One Reason That a Common-Sized Statement Is a Useful Tool

question 12

Multiple Choice

One reason that a common-sized statement is a useful tool in financial analysis is that it enables the user to

• A) judge the relative potential of two companies of similar size in different industries
• B) determine which companies in a single industry are of the same value
• C) determine which companies in a single industry are of the same size
• D) make a better comparison of two companies of different sizes in the same industry

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Definitions:

Appeal to Popularity

A logical fallacy that argues something is true or better because many people believe it or do it.

Emotional Appeal

A persuasive technique that uses the audience’s emotions to make them want to do what the writer or speaker asks.

Values

Fundamental beliefs or principles that guide an individual's or society's behavior and decision-making processes.

Persuasive Direct Request

A communication approach that clearly and convincingly asks for a specific action or response from the recipient.