The study of a company's accounting statements and future prospects to determine its value is known as ?
Correct answer: C. fundamental analysis
- A. information analysis
- B. risk management
- C. fundamental analysis
- D. diversification
Explanation
Fundamental analysis evaluates a company's financial statements, business condition and future earnings prospects to estimate its intrinsic value. Risk management and diversification concern controlling investment risk rather than valuing a company.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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