Suppose you are comparing two firms within an industry. One is large and the other is small.

Will relative or absolute numbers be of more value in each case?

What kinds of statistics can help evaluate relative size?

After answering these questions, describe some of the risks related to comparing companies of different sizes. Additionally, explain what risks are involved with comparing two companies in the same industry.

In your peer responses, identify some possible risks that arise from the comparison of a firm to averages in the industry. How do these risks compare to those mentioned by your classmates in their original posts, which develop as a result of company-competitor comparisons and different-size company comparisons?