Efficiency in Markets Is Generally Increased by the Discipline of

question 245

Multiple Choice

Efficiency in markets is generally increased by the discipline of

• A) planning and profits.
• B) prices and planning.
• C) prices and profits.
• D) production and planning.

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Definitions:

Liquidity

Refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.

Price-earnings Ratio

The Price-earnings Ratio is a measure of a company's current share price relative to its per-share earnings, used to evaluate its valuation.

Market Price Per Share

The current value at which an individual share of a company can be bought or sold in the market.

Contra Asset Accounts

Accounts on a balance sheet that have a credit balance and are used to offset the debit balances in related asset accounts, such as accumulated depreciation.