Which of the Following Is NOT a Limitation Related to the Usage

question 17

Multiple Choice

Which of the following is NOT a limitation related to the usage of ratios when reviewing a firm's performance?

• A)Many firms experience seasonality in their operations.
• B)Ratios cannot be used to compare firms that are in the same industry if one firm's sales are higher than another firm.
• C)Some firms operate in a variety of business lines,which makes it difficult to make comparisons.
• D)Accounting practices differ widely among firms.

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Definitions:

Assertiveness

The quality of being self-assured and confident without being aggressive, enabling clear and direct communication.

Characteristic

A distinguishing feature or quality that defines an individual, object, or concept.

Leadership

The act of guiding or directing a group towards a goal or vision, often involving motivating and influencing others.

Power

The ability or capacity to direct or influence the behavior of others or the course of events.