Peer Group Analysis Can Be Performed by

question 26

Multiple Choice

Peer group analysis can be performed by

• A) management choosing a set of companies that are similar in size or sales, or who compete in the same market.
• B) using the average ratios of this peer group, which would then be used as the benchmark.
• C) identifying companies in the same industry that are grouped by size, sales, and product lines in order to establish benchmark ratios.
• D) Only a and b relate to peer group analysis.

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Definitions:

Advantage

Advantage refers to a favorable position or condition that enhances the probability of success or effectiveness in a competitive environment.

Responsibilities

Duties or obligations that an individual or organization is required or expected to perform.

Decentralization

The distribution of decision-making powers and operational activities away from a central authoritative location or group.

Advantage

A condition or circumstance that puts one in a favorable or superior position.