What Are Some Potential Pitfalls of Ratio Analysis Based on Accounting

question 9

Essay

What are some potential pitfalls of ratio analysis based on accounting data?

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Definitions:

Negotiation

The process of discussing and reaching an agreement between two or more parties, each with its own interests and objectives.

Mediation

A confidential and voluntary process involving a neutral third party to help resolve disputes or conflicts.

Wrongful Dismissal

A lawsuit filed in a court by an employee alleging that he or she was dismissed without proper contractual or “reasonable” notice.

Reasonable Notice

The period of notice that an employer is legally required to give an employee before terminating their employment, or that an employee should give an employer before resigning.