Which of the Following Values Treats the Firm as a Going

question 39

Multiple Choice

Which of the following values treats the firm as a going concern?

• A)market value
• B)book value
• C)liquidation value
• D)Both book value and liquidation value

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Definitions:

Equilibrium

An equilibrium in the market where demand matches supply, thereby stabilizing prices.

General Equilibrium

An economic condition where supply and demand are balanced across all markets in the economy, leading to an optimal distribution of resources.

Simultaneous Equilibrium

A condition in which all markets in an economy are in equilibrium at the same time, reflecting a balance between supply and demand.

Capital Flows

Movements of capital in the form of money or investment from one country to another.