Which One of the Following Is Used as an Indicator

question 28

Multiple Choice

Which one of the following is used as an indicator that a firm has good-quality earnings?

• A)declining price-earnings ratios
• B)constant price-earnings ratios
• C)cash flows per share that exceed earnings per share
• D)earnings per share that exceed cash flow per share
• E)positive earnings per share

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Definitions:

Product Development

The process of bringing a new product or service to the market, from ideation and design through to production and launch, involving research and testing to meet consumer needs.

Triggering Event

A specific occurrence or situation that initiates a predetermined action or series of actions within a business or project context.

Start-Up Process Model

A framework outlining the step-by-step progression needed to establish a new business, from idea conception to market entry.

Environmental Factors

Forces that occur outside of the business that affect the business and its owner.