When Using Ratio Data for Comparison to Other Companies,analysts Should

question 17

Multiple Choice

When using ratio data for comparison to other companies,analysts should:

• A)not assume that all companies in the industry are in direct competition.
• B)not interpret the data as a way of determining which companies will survive and outperform others.
• C)only use data from one time period.
• D)use industry averages,rather than individual companies,for the comparison.

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Definitions:

Charles de Gaulle

A French army officer and statesman who led the Free French Forces during World War II and later became President of France.

Atomic Bomb

A weapon of mass destruction that derives its destructive force from nuclear reactions, either fission or a combination of fission and fusion, first used in warfare by the United States in World War II.

Hiroshima

A city in Japan that was the first to be subjected to nuclear warfare when it was bombed by the United States on August 6, 1945, during World War II.

Stalingrad

The site of a major battle during World War II between Soviet and Axis forces, known for its brutal combat and pivotal role in turning the tide of the war in favor of the Allies.