Which of the Following Will Most Directly Determine the Market

question 61

Multiple Choice

Which of the following will most directly determine the market price of a business or physical asset?

• A) cost of the asset
• B) expected future net earnings derived from the asset
• C) book value (original purchase price minus depreciation) of the asset
• D) age of the asset

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Definitions:

Manifest Needs Theory

A psychological theory suggesting that certain human needs are openly communicated and visible, influencing behavior in different situations.

Affiliation

The need or desire to form connections with others, often driven by a sense of belonging or social identity.

Valence

In psychology, the intrinsic attractiveness or averseness of an event, object, or situation.

Frustration-Regression Principle

A concept from the field of psychology suggesting that when an individual's progress toward a goal is blocked, they may regress to previously held behaviors.