Question

An analysis based on ratios should be supplemented with judgmental considerations such as the possible effects of new competitors like the Internet on newspapers, labor problems such as those experienced by the U.S. auto industry, environmental problems such as those facing the U.S. electric utilities, and the like. If the fundamentals of an industry change, then strong historical ratios won't help its future performance. True or false

Answer 1

Answer:

The Answer is TRUE

Explanation:

If fundamentals of an industry change then definitely the strong or rich history ratios wont help the company in its future performance or problems that it may encounter. Because the Model for past accomplishment will be irrelevant because of the change in its historical ratios.