The Usefulness of Ratios Is Enhanced by Comparisons

question 36

Multiple Choice

The usefulness of ratios is enhanced by comparisons. The most common comparisons are:

• A)history, national performance measures, and budget.
• B)history, competition, and budget.
• C)history, stock market indexes, and competition.
• D)competition, budget, and internal financing sources.

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Definitions:

Specialize

Focusing one’s efforts in a specific domain or area of expertise, often to increase efficiency and skill.

Greater Quantity

A higher amount or number of something, usually used in reference to the production or supply of goods.

Comparative Advantage

A principle stating that if a country produces a good at a lower opportunity cost than another, it has a comparative advantage.

Opportunity Costs

The expense incurred from not selecting the subsequent preferable choice when a decision is made.