One Way to Measure a Company's Financial Performance Is to Benchmark

question 47

Multiple Choice

One way to measure a company's financial performance is to benchmark against that of its competition.Which of the below is NOT a problem a company faces when benchmarking this way?

• A)A problem arises when we use financial statements of different firms.
• B)Firms are of different sizes,and thus comparisons may be troubling.
• C)We cannot restate common-size financial statements for different firms.
• D)All of these are problems.

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