The Focusing of Attention on One Characteristic to the Exclusion

question 6

Multiple Choice

The focusing of attention on one characteristic to the exclusion of others is called

• A)animism.
• B)egocentrism.
• C)centration.
• D)object permanence.

---

Definitions:

Terminal Value

Terminal Value is an estimate of a business's value in the future when it is expected to have stable growth; often used in discounted cash flow (DCF) analyses to estimate a company’s valuation at a specified future point.

Inflation Rate

A measure of the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in the calculation of investment and financing decisions.

PE Ratios

Price-to-Earnings Ratio, a valuation metric for stocks calculated by dividing the market price per share by the earnings per share.