If Goodwill Makes Up a Large Percentage of a Company's

question 5

Multiple Choice

if goodwill makes up a large percentage of a company's total assets, this most likely indi- cates that:

• A) the company has low free cash flow before dividends.
• B) there is a low likelihood that the market price of the company's common stock is below book value.
• C) a large percentage of the company's assets are not of high quality.

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Definitions:

Ethical

Pertains to moral principles that govern a person's behavior or the conducting of an activity.

Administration

This term generally pertains to the management, organization, and supervision of the affairs and operations of institutions or businesses.

Child Abuse

Any action by another person – adult or child – that causes significant harm to a child.