If Cash Flow Is Deemed to Be the Most Important

question 20

Multiple Choice

If cash flow is deemed to be the most important consideration in buying a business, which of the following valuation methods is likely to be used?

• A)adjusted tangible assets
• B)price/earnings
• C)high equity/low debt
• D)discounted future earnings

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Definitions:

Cause And Effect

A relationship where one event (the cause) makes another event happen (the effect), often explored in psychology to understand behavioral outcomes.

Cognitive Approaches

Psychological methods that focus on understanding how thought processes influence behavior and emotions.

Albert Ellis

An American psychologist who developed Rational Emotive Behavior Therapy (REBT), emphasizing the role of beliefs and attitudes in emotional disturbance.

Rational Emotive Behavioral Therapy

A cognitive-behavioral approach to psychotherapy that emphasizes the role of rational thinking in the emotional and behavioral lives of individuals.