Low base effect
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Low base effect in business and economics is the tendency of a small absolute change from a low initial amount to be translated into a large percentage change. In the following example, focusing solely on the 33.3% growth of Company B in year 5 may give a misleading indication of the company's relative performance versus Company A.
Low base effect in business and economics is the tendency of a small absolute change from a low initial amount to be translated into a large percentage change. In the following example, focusing solely on the 33.3% growth of Company B in year 5 may give a misleading indication of the company's relative performance versus Company A.
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