An analyst starts by examining the broad economic environment and then considers the implications of the economy on the industry in which the firm operates. Finally, the firm's position within the industry is examined. This is called ________ analysis.
A) bottom-up
B) outside-inside
C) top-down
D) upside-down

Question

Quizplus · Accepted Answer

This is because the analyst is starting from the macroeconomic environment (top) and then moving down to the firm's position within the industry (down), hence it is called top-down analysis.

An Analyst Starts by Examining the Broad Economic Environment and Then