The approach that seeks to identify factors that are likely to influence the growth rate and future profits of a company is called:
A) economic analysis.
B) factor analysis.
C) fundamental analysis.
D) technical analysis.

Question

Quizplus · Accepted Answer

Fundamental analysis looks at a company's financial and economic factors to determine its growth potential and future profits. Factors such as financial statements, industry trends, and management are analyzed to make investment decisions. Economic analysis looks at macroeconomic factors such as GDP and unemployment rates, while factor analysis is a statistical method used to identify underlying factors that contribute to a particular outcome. Technical analysis involves analyzing charts and patterns to make investment decisions.

The Approach That Seeks to Identify Factors That Are Likely