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

question 96

Multiple Choice

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

• A) Benchmarking is the practice of comparing a company with other leading companies.
• B) The industry average is not a useful benchmark for evaluating a company.
• C) Providing common-size percentages in a graphical manner highlights differences.
• D) The two main types of benchmarks in financial statement analysis include benchmarking against the industry average and benchmarking against a key competitor.

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Definitions:

Demographic Transition Theory

A theory describing the transition from high birth and death rates to lower birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Crude Death Rate

The measure of the number of deaths in a given population, usually expressed as the number of deaths per 1,000 individuals per year.

Crude Birth Rate

A demographic measure representing the number of live births per 1,000 people in a population within a given year.

Capital Accumulation

The process of acquiring additional assets or wealth, particularly for reinvestment with the aim of generating further economic growth.