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Suppose you are comparing two firms in the food industry. One firm is large and the other is small. Which type of numbers would be most meaningful to compare their financial statements?
Absolute numbers would be most meaningful for both the large and small firm
Absolute numbers would be most meaningful for the large firm; percentages would be most meaningful for the small firm
Percentages would be most meaningful for the large firm; absolute numbers would be most meaningful for the small firm
It is not meaningful to compare a large firm with a small firm
Percentages would be most meaningful for both the large and small firm, especially for interfirm comparisons.
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