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describe implications for financial statement analysis of evaluating companies in specialized industries or with unique characteristics.

describe implications for financial statement analysis of evaluating companies in specialized industries or with unique characteristics.

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Answer #1

There are many implications of financial statement analysis of companies in specialized industries:

1) It helps us in building sector expertise as a specific company belongs to that sector.

2) It also helps us in knowing the potential entry barriers for a new company into a specific product segment.

3) Doing the specific analysis also helps us leads into the future performance or demand of a particular sector or product segment.

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