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:

Drive-Reduction Theory

A theory suggesting that the motivation of behavior arises from biological needs that drive an individual to act in ways that reduce these drives.

Cognitive Developmental Theory

A theory in psychology that explains how children acquire the ability to think, learn, and reason as they grow.

Resolution Phase

In sexual response, the phase following orgasm during which the body returns to its pre-arousal state.

Sexual Response Cycle

A sequence of physiological and emotional changes that occur in the body during sexual behavior, typically described in four stages: excitement, plateau, orgasm, and resolution.