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Question
Comparison of actual values of one firm with those of another firm belonging to the same industry is ______.
Options
Intra-firm comparison.
Inter-firm comparison.
Pattern comparison.
Standard comparison.
MCQ
Fill in the Blanks
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Solution
Comparison of actual values of one firm with those of another firm belonging to the same industry is inter-firm comparison.
Explanation:
Inter-firm comparison refers to evaluating and comparing the financial performance, data, or ratios of two or more different businesses that operate within the exact same industry. For example, comparing the profit margins or balance sheets of Tata Motors with Maruti Suzuki represents a standard inter-firm analysis. The prefix “inter” explicitly denotes a comparison between or across different external entities.
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