What Type of Scale Is the Following? What Was Your

question 71

Multiple Choice

What type of scale is the following? What was your annual gross income (before taxes) last year? $____.

• A) Nominal scale
• B) Ordinal scale
• C) Interval scale
• D) Ratio scale
• E) Constant-sum scale

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Definitions:

Market-to-Book Value

A ratio used to compare a company's current market price to its book value, indicating how highly the market values the company relative to its actual assets.

Financial Statements

A set of formal records that outline an entity's financial activities and condition, including the balance sheet, income statement, and cash flow statement.

Stock Market

A collection of markets and exchanges where the buying, selling, and issuance of shares of publicly-held companies occur.

Market-to-Book Value

A ratio used to compare a company's market value to its book value, indicating how much investors are willing to pay above or below the net asset value.