Which of the Following Is a Premise of Value That

question 19

Multiple Choice

Which of the following is a premise of value that is applied to business valuations?

• A) going concern
• B) materiality
• C) substance over form
• D) neutrality

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Definitions:

System 1

An automatic, fast, and often unconscious way of thinking, as described in dual-process theories of cognition.

Framing Effects

The influence on decision-making and judgment caused by the way information is presented, where different phrasing, presentation, or context can significantly alter individuals' choices.

Self-Serving Bias

A cognitive bias where individuals attribute positive outcomes to their own actions but negative outcomes to external factors.

System 2

A term often associated with dual-process theories of mind, representing the analytical, deliberate, and logical mode of thinking.