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Why would someone compare past and present performance of the same company or compare business performance against the performance of other businesses in the same industry? A) To determine market demand B) To calculate taxes C) To identify areas for improvement D) To set employee salaries

User Dlinsin
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Comparing past and present performance of the same company or comparing business performance against the performance of other businesses in the same industry serves multiple purposes. Some of these purposes include:

C) To identify areas for improvement: By comparing past and present performance, a company can assess its progress over time. This comparison helps identify areas where the company has improved or declined. It allows management to analyze trends, evaluate strategies, and make informed decisions on how to enhance the company's performance.

D) To set employee salaries: Comparing business performance against other companies in the same industry can provide valuable insights for setting employee salaries. It helps determine the company's competitive position in terms of financial performance, which can influence compensation decisions. For instance, if a company is performing better than its competitors, it may be able to offer higher salaries to attract and retain talented employees.

In addition to these two options, comparing past and present performance or business performance against industry peers can also help in assessing market demand and calculating taxes. However, the primary purposes are to identify areas for improvement and set employee salaries.

User David Michael Gang
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