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If a Company Is Comparing Its Financial Condition or Performance

question 94

True/False

If a company is comparing its financial condition or performance to a base amount, it is using vertical analysis.

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Definitions:

Informal Communication Network

A less structured, often personal, way of sharing information and social interaction within an organization.

Organization Structure

The system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups.

Lines Of Command

The hierarchical structure within an organization that dictates who is in charge of whom and who makes decisions.

Critical Thinking

The ability to evaluate evidence completely and objectively in order to form logical conclusions and make sound recommendations.

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