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Analyzing the performance of a company starts with ratios in order to get a perspective on...

Analyzing the performance of a company starts with ratios in order to get a perspective on the firm's past and present. But good analysis must also include

intuition about the political situation inside a firm.

trend analysis and financial modeling.

trend analysis and benchmarking with the industry or major competitors.

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Answer #1

Option 3 is correct

Trend analysis and benchmarking with the industry or major competitors.

Explanation:

It is necessary to compare a company relative to its peers to get the better understanding of company's position among it's competitive sector.

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