Question : ------------------involves the comparison of a firm’s ratios with that of some selected firms in the same industry or industry average at the same point of time. Such a comparison is helpful in assessing the relative financial position and performance of the firm.
Option 1: Time – series analysis
Option 2: Cross-sectional analysis
Option 3: Ratio
Option 4: None of the above
Correct Answer: Cross-sectional analysis
Solution : Answer = Cross-sectional analysis
Cross-sectional analysis compares a firm's ratios with those of selected firms in the same industry or industry averages at a specific time. It aids in evaluating the firm's financial position and performance relative to its industry peers, providing insights into its competitiveness and efficiency.
Hence, the correct option is 2.
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