An Asset That Cannot Be Sold Individually in the Market

question 107

Multiple Choice

An asset that cannot be sold individually in the market place is

• A) a patent.
• B) goodwill.
• C) a copyright.
• D) a trade name.

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Definitions:

Perpetuity

A type of financial annuity that generates an infinite series of equal payments over an indefinable period of time.

Dividends

Cash payouts made by a corporation to its equity holders, usually stemming from the corporate profits.

Discount Rate

The interest rate used to discount future cash flows to their present value, essentially reflecting the opportunity cost of capital.

Present Value

The up-to-date valuation of a future financial sum or cash flow sequence, considering a determined rate of return.