Profit and Value of the Firm Are Two Concepts Which

question 12

Multiple Choice

Profit and value of the firm are two concepts which are:

• A)Unrelated because cash flow not profit is the main determinant of firm value
• B)Closely linked because the present value of a firm's future profits approximates to the market value of its securities
• C)Closely linked because dividends are paid out of profits and it is dividends that determine the market value of a firm's shares
• D)Closely linked because the market value of a firm is determined by its profits multiplied by the price-earnings ratio of its shares

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Definitions:

Doubters of Change

Individuals who are skeptical or resistant to organizational changes, potentially hindering the change process.

Value of Change

Refers to the benefits or improvements that result from implementing changes within an organization or system.

Identity Gap

The discrepancy between individuals' perceptions of their real self and their desired self, often leading to internal conflict and stress.

Acceptance of Change

The level at which individuals or organizations adapt to or embrace new policies, procedures, or environments without significant resistance.