When Using Ratio Data for Comparison to Other Companies,analyst Should

question 99

Multiple Choice

When using ratio data for comparison to other companies,analyst should:

• A)not assume that all companies in the industry are in direct competition.
• B)not interpret the data as a way of determining which companies will survive and outperform others.
• C)only use data from one time period.
• D)use industry averages,rather than individual companies,for the comparison.

---

Definitions:

Socialized Power

A form of power that is utilized for the benefit of a group or society as a whole, rather than for individual gain.

Personalized Power

Power wielded for personal gain or satisfaction rather than for the benefit of others or the organization, characterized by self-centered behavior and manipulation.

E-to-P Expectancy

The belief that exerting a certain amount of effort will lead to a specific level of performance.

Employee Motivation

The level of enthusiasm, fidelity, and ingenuity that staff members of a corporation show in their job functions.