Differences in Business Traditions and Practices Could Make Cross-Country Ratio

question 50

Multiple Choice

Differences in business traditions and practices could make cross-country ratio analysis difficult.What should an analyst do to overcome this problem?

• A)Learn more about the business environment in relevant countries.
• B)Make all decisions using nominal monetary differences rather than ratios.
• C)Translate all ratios to a common currency.
• D)Avoid recommending investments in foreign companies.

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Definitions:

Economy

A system involving the production, distribution, and consumption of goods and services within a society or geographical area.

Government Intervention

Involvement by the government in the market to influence the allocation of resources and distribution of goods.

Efficient Results

Outcomes in which resources are allocated in a way that maximizes the net benefits to society.

Equitable Outcome

An equitable outcome is a fair and impartial distribution of resources or opportunities among all members of a community or society, taking into account the needs and contributions of each individual.