Question

Please choose a letter answer and explain the answer please.

1. An analyst starts by examining the broad economic environment and then considers the implications of the outside environment on the industry in which the firm operates. Finally, the firm's position within the industry is examined. This is called                                                                                                                     _ analysis.

1. bottom-up
2. outside-inside
3. top-down
4. upside-down

Answer 1

Ans C. top-down

An analyst starts by examining the broad economic environment and then considers the implications of the outside environment on the industry in which the firm operates. Finally, the firm's position within the industry is examined. This is called top-down analysis.