Question

Appropriate ratio comparisons with include: A)The same company over time B)Two of the other answers are...

Appropriate ratio comparisons with include:

A)The same company over time

B)Two of the other answers are correct

C)Different companies in different industries

D) Different companies in the same industry

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Answer #1

Answer

B)Two of the other answers are correct

Explanation:

Ratio comparisions cane be of follwing nature:

1. Intra firm: In this, comparisions are made of the same company overtime. Example- Comparisions of Apple performance of 2019 and 2020.

2. Inter firm: In this, comparisions are made of different companies in the same industry. Example - Apple and microsoft are comapred.

So, option A and D are correct.

Hence, option B is correct answer.

In case of any doubt, please comment.

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