What Is the Primary Weakness of Using Raw Financial Statement

question 33

Essay

What is the primary weakness of using raw financial statement numbers in cross sectional analysis? How can the problem be solved?

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Definitions:

Self-actualization

Self-actualization is the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Sensation Seeker

Someone who needs more arousal than the average person.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with increased cognitive activity and physical readiness.