The companies that help to set benchmarks are classified as ___________?

Correct answer: B. benchmark companies

  • A. competitive companies
  • B. benchmark companies
  • C. analytical companies
  • D. return companies

Explanation

Benchmark companies are selected as comparison standards so that a firm can measure its performance against relevant industry or market results. The other labels are not standard terms for this role.

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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.

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