Which of the Following Is Not True of Liquidity or Marketability

question 93

Multiple Choice

Which of the following is not true of liquidity or marketability risk or discount?

• A) It is measurable.
• B) It is believed to have declined in recent years
• C) The magnitude of the discount or risk is inversely related to the size of the investor's equity ownership in the business.
• D) The magnitude of the discount or risk is directly related to the size of the investor's equity ownership in the business.
• E) It is important to adjust the discount rate for liquidity risk.

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Definitions:

Social Presence

The sense of being with another in a communication environment, which can influence behaviors, perceptions, and social interactions, applicable both in physical and virtual contexts.

Markus

A researcher notable for contributions to the field of psychology, especially in the areas of the self-concept and its influence on cognition and behavior.

Mere Presence

Refers to an entirely passive and unresponsive audience that is only physically present.

Audience Effect

The impact of an audience's presence on an individual's performance, typically leading to improvement or deterioration depending on the task's complexity and the performer's expertise.