The Vertical Analysis Statement of Peterson,Inc

question 21

Multiple Choice

The vertical analysis statement of Peterson,Inc.is as shown below: The 20% shown for net income in 2017 signifies that net income ________.

• A)is 20% of net sales revenues
• B)increased by 20% over the previous year
• C)is 20% of gross profit
• D)equals 20 times of the income before income tax

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Definitions:

Direct Ownership

A form of business ownership where individuals or entities have complete control over their investments or assets without intermediaries.

Foreign Market

Refers to markets outside the company's home country where it can sell or market its products or services.

Exporting

The process of exporting products or services to a foreign country for the purpose of selling them.

Licensing

An agreement in which a company allows another entity to produce its product in exchange for a predetermined fee.