What Is Benchmarking

question 35

Multiple Choice

What is benchmarking?

• A) Identifying a problem to be fixed
• B) Seeking an industry's or profession's best practices to imitate and improve
• C) Explaining why a problem occurred
• D) Asking the CEO's opinion and going with his or her idea

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk.

Levered Firms

Companies that use debt in their capital structure alongside equity.

Unlevered Firms

Companies that operate without the use of borrowed money or debt in their capital structures.

Interest Tax Shield

A reduction in taxable income that results from deducting interest payments, decreasing overall tax liability.