A top-down analysis of a firm's prospects starts with an analysis of the ________.

Question

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Starting with an analysis of the U.S. economy or even the global economy provides a broader perspective of the market conditions that can affect the firm's performance. This allows for a better understanding of the external factors that can impact the industry and the firm, which is essential in making informed decisions about the firm's prospects. Once this larger context is understood, then a more detailed analysis of the industry and the specific firm under consideration can be conducted.

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