Differences in business traditions and practices could make cross-country ratio analysis difficult.What should an analyst do to overcome this problem?
A)Learn more about the business environment in relevant countries.
B)Make all decisions using nominal monetary differences rather than ratios.
C)Translate all ratios to a common currency.
D)Avoid recommending investments in foreign companies.

Question

Quizplus · Accepted Answer

An analyst should learn more about the business environment in relevant countries to understand the context and nuances of financial data, which can help in making more accurate comparisons and analyses.

Differences in Business Traditions and Practices Could Make Cross-Country Ratio