In Regards to Benchmarking,which of the Following Statements Is Correct

question 112

Multiple Choice

In regards to benchmarking,which of the following statements is correct?

• A) The two main types of benchmarks in financial statement analysis include benchmarking against a prior year of the same company and benchmarking against a key competitor.
• B) Benchmarking is the practice of comparing a company with information provided by the Financial Standards Accounting Board.
• C) The Risk Management Association provides common-size statements for most industries.
• D) It is not helpful to provide common-size percentages in a graphical manner.

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Definitions:

Social Norms

The unwritten rules that govern the behavior of individuals within a society or group.

Immoral Manager

A manager who chooses to behave unethically.

Ethical Implications

Refers to the moral consequences or considerations of a decision, action, or policy in various aspects of human activities.

Kohlberg's Conventional

A stage in Kohlberg's theory of moral development where individuals' reasoning is based on societal norms and the expectations of important others.