The second step in financial statement analysis is to identify the company strategy. Which of the following is a question an analyst should ask when performing a strategy analysis?
a. Are industry sales growing rapidly or slowly?
b. Do earnings include revenues that appear mismatched with the business model employed by the firm?
c. Does the industry include a large number of firms selling similar products?
d. What is the company's degree of geographical diversification?
D
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Which of the following accounting measures indicates the amount of stockholder funds used to finance the firm?
A. Book value B. Actual rate of return C. Net profit margin D. Approximate yield E. Price/earnings ratio
Under what general circumstances is factor analysis used?
What will be an ideal response?
An ______ ending is an undesirable ending, as you need to carefully build and explain your concluding thoughts.
Fill in the blank(s) with the appropriate word(s).
Which of the following characteristics of a good process layout is FALSE?
a. It minimizes material handling. b. It minimizes transportation costs. c. It minimizes customer waiting time. d. It maximizes employee waiting time.