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:

Organization Performance

A measure of the efficiency and effectiveness of a company based on criteria such as profitability, revenue, and customer satisfaction.

Employee Stock Ownership Plan

A program that gives employees ownership interest in the company through stock ownership, often used as a corporate finance strategy.

Incentive Plan

A structured program designed to motivate and compensate employees beyond their regular paychecks, often based on performance, productivity, or achieving specific goals.

Stock Ownership Plans

Employee benefit plans that give workers ownership interest in the company through the acquisition of stock, often aimed at improving employee motivation and performance.