With regard to forming a company’s peer group, which of the following statements is not correct?

A. Comments from the management of the company about competitors are generally not used when selecting the peer group.

B. The higher the proportion of revenue and operating profit of the peer company derived from business activities similar to the subject company, the more meaningful the comparison.

C. Comparing the company’s performance measures with those for a potential peergroup company is of limited value when the companies are exposed to different stages of the business cycle.