Which of the Following Is Not a Necessary Assumption to Make

question 24

Multiple Choice

Which of the following is not a necessary assumption to make in order to use comparables to value a firm?

• A)A value-relevant measure can be identified.
• B)The markets are both perfect and efficient.
• C)The market values comparable projects similarly.
• D)You can identify projects that are close comparables.

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Definitions:

Flavor Aversions

The learned avoidance of a particular food or taste after a negative experience, associating it with illness or discomfort.

Organisms

Living beings that carry out essential life processes such as growth, reproduction, and metabolism.

Stimulus

An external or internal event or occurrence that elicits a response from a cognitive system or organism.

Concurrent Interference Theory

A theory suggesting that the ability to learn or recall information can be hindered by simultaneous processing of competing information.