When Financial Statements of two or more organisations are analysed, it is called : |
Intra-firm Analysis Inter-firm Analysis Horizontal Analysis None of these |
Inter-firm Analysis |
The correct answer is option 2- Inter-firm Analysis. Inter-firm comparison technique is a method of self-analysis of the business by the businessmen themselves. The management of the business on the basis of results obtained from the self-analysis is bound to react and look around for means to improve its performance or increase productivity. |