Which of the Following Is the Major Limitation of Using

question 31

Multiple Choice

Which of the following is the major limitation of using EBITDA for analyzing foreign financial statements?

• A)It is nearly impossible for most financial analysts to calculate this number.
• B)Few analysts understand what this earnings number represents.
• C)The excluded items may be important factors for evaluation.
• D)It cannot be converted from a foreign currency to a domestic currency.

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Definitions:

Tax Cut Bill

Legislation aimed at reducing the amount of taxes imposed on individuals, corporations, or specific activities, with the goal of stimulating economic growth or achieving other policy objectives.

Filibuster

A political strategy in which a member of a legislature speaks at length to delay or prevent a vote on a proposal.

U.S. Senate

One of the two chambers of the United States Congress, comprising 100 senators who represent the 50 states, with each state having two senators regardless of population.

Party Whips

Officials in political parties whose primary purpose is to ensure party discipline, keeping members in line with the party's policies and voting as the party leadership desires.