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All of the Following Are Problems with Cross-Sectional Financial Analysis

Question 20

Multiple Choice

All of the following are problems with cross-sectional financial analysis EXCEPT that


A) an industry may be dominated by a few firms.
B) annual reports sometimes do not disclose divisional financial data.
C) many firms are conglomerates.
D) it provides no basis for comparison to other firms.
E) there may be no obvious firms to be used for comparison.

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