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Question
Cross-section analysis is also known as ______.
Options
Debt Analysis
Trend Analysis
Inter-firm Analysis
Intra-firm Analysis
MCQ
Fill in the Blanks
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Solution
Cross-section analysis is also known as inter-firm analysis.
Explanation:
Cross-section Analysis is another name for Inter-firm Analysis. It involves comparing the financial statements, ratios, or operational data of different companies within the same industry at a single, specific point in time. For instance, comparing the current liquidity position of Reliance Industries against Adani Enterprises for the same financial year is a cross-sectional study.
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