You Are Considering the Purchase of a Business That Is

question 82

Multiple Choice

You are considering the purchase of a business that is currently earning $25,000 per year in after-tax profit. If these conditions are expected to continue year after year into the future, and the interest rate is currently 10 percent, the current market value of this business is

• A) $2,500.
• B) $25,000.
• C) $250,000.
• D) $2,500,000.

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Definitions:

Presumed Membership

The assumption or belief that an individual belongs to a certain group or category based on perceived characteristics or stereotypes.

Asian

Pertaining to or originating from Asia, including its peoples, cultures, languages, and societies.

Scapegoating

A psychological or social process where individuals or groups assign blame to others for problems or negative outcomes.

Outgroup

An outgroup is a group of people who do not belong to or are excluded from one's own group, often leading to prejudice or discrimination against them.