In regards to benchmarking, which of the following statements is incorrect?
A) Benchmarking is the practice of comparing a company with other leading companies.
B) The industry average is not a useful benchmark for evaluating a company.
C) Providing common-size percentages in a graphical manner highlights differences.
D) The two main types of benchmarks in financial statement analysis include benchmarking against the
industry average and benchmarking against a key competitor.
B) The industry average is not a useful benchmark for evaluating a company.
You might also like to view...
Which of the following statements is true of Maslow's hierarchy of needs?
A) The first level of need that an individual has to fulfill is his safety requirements. B) Self-esteem needs act as a powerful drive to create demand for status-improving goods. C) As countries progress economically, more people begin to operate at the physiological level. D) The final stage in Maslow's need hierarchy is self-esteem.
Which of the following is shown on the balance sheet as well as the statement of cash flows?
A) Stockholders' equity (ending balance) B) Net income C) Total assets (ending balance) D) Cash (ending balance)
Which of these factors is NOT necessary for an existing company to qualify as an Emerging Growth Company (EGC) to conduct an IPO?
A. the company must have less than $1.07 billion in annual revenue B. the company must have fewer than 100 shareholders C. the company must have issued no more than $1 billion in debt D. the company must have less than $700 million in stock outstanding after an IPO
The probability distribution that can be described by just one parameter is the _____ distribution
a. uniform b. normal c. exponential d. continuous