Which of the Following Is the Definition of Benchmarking

question 121

Multiple Choice

Which of the following is the definition of benchmarking?

• A) Benchmarking is the study of percentage changes in financial statement line items year to year.
• B) Benchmarking is the analysis of a financial statement that shows each item as a percentage of net sales or total assets.
• C) Benchmarking is the practice of comparing a company with other companies in that industry.
• D) Benchmarking is the comparison of two companies using horizontal analysis.

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Definitions:

Unlimited Personal Liability

A legal obligation where an individual's personal assets can be used to satisfy the debts and liabilities of the business.

New Capital

Funds raised by a company through issuing new shares or debt to finance its business activities.

Hedge Funds

Investment funds that employ various strategies to earn active return, or alpha, for their investors, often requiring a large initial minimum investment and offering less regulation.

Market-Neutral

Market-neutral is an investment strategy or portfolio designed to neutralize certain market risks by taking offsetting positions, aiming to achieve returns largely independent of the overall market movement.