Historical comparisons provide information to managers about changes in the competitive position of a firm.Historical comparisons often are misleading
A) if the overall strategy of the firm is the same.
B) if the firm shows constant growth.
C) in periods of recession or economic boom.
D) if the firm's stock is publicly traded.

Question

Quizplus · Accepted Answer

Exhibit 3.9 illustrates a 10-year period of return on sales (ROS) for a hypothetical company. As indicated by the dotted trend lines, the rate of growth (or decline) differs substantially over time periods, and periods of recession and economic boom may make the trends unreliable.

Historical Comparisons Provide Information to Managers About Changes in the Competitive