Which of the Following Statements Regarding Firms and Value Is

question 46

Multiple Choice

Which of the following statements regarding firms and value is NOT true?

• A)We can create value by taking on negative net present value projects.
• B)Shareholder control in and of itself has value.
• C)Value is ultimately what someone is willing to pay for a firm.
• D)It is important to know what is being valued; the assets or the equity in a firm.

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Definitions:

Sales Tax

A tax imposed by governments on the sale of goods and services.

Sales Tax Rate

The percentage of sales price that is added to the sales price of goods and services, collected by sellers.

Sales Tax Rate

The percentage added to the sale price of goods and services, collected by retailers and forwarded to the government.

Sales Tax

A tax levied by a government on the sale of goods and services, collected by the retailer and passed on to the government.