A top-down analysis of a firm's prospects starts with

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A top-down analysis begins at a broad level and then narrows down to the specific firm being analyzed. Therefore, the starting point would be an assessment of the broad economic environment, including factors such as interest-rate movements, political climate, and global economic trends. Only after this assessment is done can one evaluate the firm's position within its industry and examine the industry itself.

A Top-Down Analysis of a Firm's Prospects Starts with