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Provide examples for (a) downward social comparison and (b) upward social comparison. Discuss the consequences of each type of social comparison.
Pro Forma Financial Statements
Financial statements projecting future years' earnings, usually to assess the impact of new projects or acquisitions.
Capital Intensity Ratio
A financial metric that measures the amount of assets needed per dollar of sales; higher ratios indicate a greater investment in assets to generate sales.
Capital Intensity Ratio
A measure of a company's investment in physical assets relative to its labor force, indicating the extent to which a firm's operations are automated or labor-intensive.
Operating Capacity
The maximum output that a business can produce in a given period under normal conditions, influenced by its resources and operational constraints.
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