If an Earnings Multiplier Is Not Available for a Given

question 64

Multiple Choice

If an earnings multiplier is not available for a given firm, the multiplier used in an earnings-based method of valuation of a firm is often estimated from comparable:

• A) Taxable entities.
• B) Industries.
• C) Firms.
• D) For-profit firms.
• E) Publicly-held firms.

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Definitions:

Participation

The act of taking part or involving oneself in an activity or discussion within an organization to contribute to decision-making processes.

Valued Rewards

Incentives or recognition that hold significant meaning or worth to an individual or group, motivating behavior and fostering a sense of achievement and satisfaction.

Job Performance

The level of effectiveness and efficiency with which an individual fulfills their job responsibilities and tasks.

Expectancy Theory

A motivational theory that proposes individuals are motivated to act in a certain way based on their expectation that their actions will lead to a desired outcome.