The correct answer is: B. Ratio analysis
Ratio analysis is the process of comparing various financial factors of a company over a period of time. This can be done by calculating ratios of different financial items, such as assets, liabilities, equity, income, and expenses. Ratio analysis can be used to assess a company’s financial health, profitability, liquidity, and solvency.
Inter-firm comparison is the process of comparing the financial performance of two or more companies. This can be done by calculating ratios of the same financial items for each company and then comparing the ratios. Inter-firm comparison can be used to identify companies that are performing well or poorly relative to their peers.
Intra-firm comparison is the process of comparing the financial performance of a company over time. This can be done by calculating ratios of the same financial items for the company at different points in time and then comparing the ratios. Intra-firm comparison can be used to identify trends in the company’s financial performance.
Inter-industry comparison is the process of comparing the financial performance of companies in different industries. This can be done by calculating ratios of the same financial items for companies in different industries and then comparing the ratios. Inter-industry comparison can be used to identify industries that are performing well or poorly relative to other industries.