Which of the Following Statements Is False

question 11

Multiple Choice

Which of the following statements is false?

• A) Because the enterprise value represents the entire value of the firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made.
• B) We can compute a firm's P/E ratio by using either trailing earnings or forward earnings with the resulting ratio called the trailing P/E or forward P/E.
• C) It is common practice to use valuation multiples based on the firm's enterprise value.
• D) Using a valuation multiple based on comparables is best viewed as a "shortcut" to the discounted cash flow method of valuation.

Recognizing strategies for promoting environmental sustainability within companies.

Defining business sustainability and the use of resources for future generations.

Knowledge of the United Nations' role and reports in defining and promoting sustainability.

Understanding zero waste management practices and the concept of the triple bottom line in assessing company performance.

---

Definitions:

Impulsivity

A propensity for spontaneous action, showing a pattern of conduct with minimal to no planning, contemplation, or regard for potential outcomes.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, characterized by episodes of psychosis including delusions, hallucinations, and disorganized thinking.

Delusions

Odd and false belief systems.

Disordered Perceptions

Abnormal interpretations or experiences of sensory information.