One Reason That a Common-Size Statement Is a Useful Tool

question 114

Multiple Choice

One reason that a common-size statement is a useful tool in financial performance evaluation is that it enables the user to

• A)make better comparisons of two companies of different sizes in the same industry.
• B)determine which companies in a single industry are of the same size.
• C)judge the relative potential of two companies of similar size in different industries.
• D)determine which companies in a single industry are of the same value.

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Definitions:

Land Ecoregions

Distinct biological communities that share similar environmental conditions, flora, and fauna, defined for areas on land.

Organization

A structured group of people or entities that work together to achieve a specific purpose or set of objectives.

Ozone Layer

A layer in the Earth's stratosphere that contains a high concentration of ozone, which absorbs most of the sun's harmful ultraviolet radiation.

Living Organisms

Entities that exhibit characteristics of life, such as growth, reproduction, and response to stimuli.