Which of the Following Is More Likely to Be Correct

question 56

Multiple Choice

Which of the following is more likely to be correct if market value of equity is less than book value of equity?

• A) Investors anticipate excellent earning potential.
• B) Investors anticipate low earning potential.
• C) Assets have been fully depreciated.
• D) The company is bankrupt.

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Definitions:

Organizational Politics

The use of power and social networking within an organization to achieve changes that benefit the individual or a group, often at the expense of others.

Organizational Citizenship

Behavior by an employee that is above and beyond their basic job requirements, aimed at benefiting the overall organization.

Machiavellian Values

Principles based on the political philosophy of Niccolò Machiavelli, which often endorse the use of cunning, strategy, and sometimes unethical means to gain and maintain power.

Manipulate

To control or influence something or someone, often in a skillful manner and sometimes with the intent to deceive.