Gap Analysis Is ________

question 21

Multiple Choice

Gap analysis is ________.

• A)a method for estimating a company's potential sales by identifying segments it is not serving adequately
• B)an investment advisor's report on the future of one of the leading clothing retailers
• C)the leap-frogging of demand in many developing economies whereby consumers skip certain generations of products, buying the latest model instead
• D)an estimation of the disparity in incomes between the very rich and the very poor in a given market

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Definitions:

Current Ratio

A measure of a company’s capability to settle short-term debts using its current assets.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing liquid assets by current liabilities, excluding inventory from assets.

Financial Stability

The condition of having strong financial health, characterized by a solid balance sheet, manageable debt, and the capability to meet short and long-term obligations.

Operating Efficiency

A measure of how well a company utilizes its resources to generate profit without unnecessary waste.