Benchmarking Is When

question 22

Multiple Choice

Benchmarking is when:

• A) a firm compares its performance with its previous performance.
• B) a firm sets up a future strategic plan based on its current performance.
• C) a firm advises other firms on organization, based on its success.
• D) a firm compares other firms in the industry to derive its strategy.

---

Definitions:

Amortization

The gradual reduction of a debt over a period of time through regular payments.

Equity in Subsidiary Earnings

Equity in subsidiary earnings represents the share of profits (or losses) from a subsidiary that is recognized by the parent company, directly proportional to its ownership stake.

Outstanding Stock

The total number of a company's shares that are currently owned by investors, including restricted shares.

Acquisition-Date

Represents the moment when one entity obtains control over another, marking a significant event for accounting and financial reporting.