When the Value of a Venture Increases, but the Value

question 32

Multiple Choice

When the value of a venture increases, but the value of its shares does not achieve a corresponding increase, this discrepancy is known as

• A) dilution.
• B) valuation divergence.
• C) factoring.
• D) liquidation.
• E) due diligence.

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Definitions:

Confirm

To establish the truth, accuracy, validity, or genuineness of something.

Predictions

The act of forecasting future events or outcomes based on current or past data.

Confounding Variables

External factors that can affect the outcome of an experiment, making it unclear whether the results are due to the independent variable or some other influence.

Dependent Variable

In an experiment, the outcome that is measured; the variable that may change when the independent variable is manipulated.