What Type of Research Looks at the Changes in Market

question 12

Multiple Choice

What type of research looks at the changes in market valuations in response to the announcement of diversifying acquisitions to assess the success of diversification?

• A)Event studies
• B)Valuation studies
• C)Diversification studies
• D)Market studies
• E)Acquisition studies

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Definitions:

Equal Intervals

Regular, consistent spaces or periods of time between events or items.

Adjusting Entries

Bookkeeping records completed at the conclusion of a financial period to apportion revenues and expenses to the timeframe in which they truly happened.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including income statement, balance sheet, and cash flow statement.

Cash Basis

An accounting method where revenue and expenses are recognized only when cash is received or paid.