Which of the following terms describes the process of comparing business performance against industry standards?

The term that describes the process of comparing business performance against industry standards is known as benchmarking. Benchmarking involves evaluating key performance indicators (KPIs), practices, and processes of a business against those of similar organizations or industry standards to identify areas for improvement and achieve best practices. This process helps businesses understand their position in the market, evaluate their performance, and implement strategies to enhance effectiveness and competitiveness.

In contrast, forecasting refers to predicting future financial outcomes or trends based on historical data and analysis, which does not involve direct comparison with industry performance. Market analysis involves examining market conditions and dynamics to inform decision-making but is not directly focused on comparing performance. Strategic planning is the process of defining an organization's direction and making decisions on allocating resources to pursue that direction, rather than measuring performance against external benchmarks. Therefore, benchmarking is the precise term that encapsulates the idea of comparing performance to industry standards.