Why Do We Use Market-Value Weights Instead of Book-Value Weights

question 7

Multiple Choice

Why do we use market-value weights instead of book-value weights?

• A) Because firms often "window-dress" their financial statements.
• B) Because we are interested in determining what the cost of financing the firm's assets would be given today's market situation and the component costs the firm currently faces, not what the historical prices would have been.
• C) Because it is required in the Sarbanes-Oxley regulations.
• D) None of these choices are correct.

Compare and contrast different types of groups and their dynamics.

Apply the concept of entitativity to differentiate between aggregates and groups.

Identify the processes and stages of group development and dynamics.

Define and differentiate between primary, secondary, and reference groups.

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Definitions:

Leader Behaviours

Actions and attitudes demonstrated by leaders that influence the motivation, performance, and well-being of followers.

Leadership Categorization Theory

A theory suggesting that people evaluate leaders based on how closely the leaders’ attributes match stereotypical or prototype attributes of leaders.

Big Five Dimensions

A model describing human personality through five broad traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraversion

A personality trait marked by an orientation towards external activities and high levels of social engagement.