问题如下:
Which of the following statements about constructing a company’s peer group is most accurate.
选项:
A. If the companies are exposed to different stages of the business cycle, there will be limitation of comparing the company’s performance measure with its peer group company.
B. Comments from the management of the company about competitors are not likely to be used when selecting the peer group.
C. The lower the proportion of revenue and operation profit of the peer company derived from business activities similar to the subject company, the better the comparison will be.
解释:
A is correct.
MD&A section in the annual reports usually provide infromation about company competitive environment and specific competitors, that analysts would use to form a peer group. The higher the proportion of revenue and operating profit of the peer company derived from business activities similar to the subject company, the more meaningful the comparison.
能不能翻译一下a选项??