What problems might robert encounter in comparing these companies to one another on the basis of their ratios? (select all the

Question

3 years ago

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What problems might robert encounter in comparing these companies to one another on the basis of their ratios? (select all the

answers that apply.)
a. financial ratios from software companies are never very reliable.
b. the operating characteristics of firms across different industries vary significantly resulting in very different ratio values.
c. the four companies are in very different industries.
d. caution must be exercised when comparing older to newer firms,
e.g., utility company vs. software company?

Business

1 answer:

Misha Larkins [42] · Answer 1 · 2022-02-24T05:41:08+03:00

Answer:

The likely problems to be encountered by Roberts include the following below:

b. the operating characteristics of firms across different industries vary significantly resulting in very different ratio values.

d. caution must be exercised when comparing older to newer firms,

e.g., utility company vs. software company?

c. the four companies are in very different industries.

Explanation:

What problems might robert encounter in comparing these companies to one another on the basis of their​ ratios? ​(select all the

What problems might robert encounter in comparing these companies to one another on the basis of their ratios? (select all the