Why Is It in General Difficult to Determine the Market

question 86

Multiple Choice

Why is it in general difficult to determine the market price of a private corporation's shares at any point in time?

• A)It is difficult to obtain enough information to accurately value such a company.
• B)The price of its shares is fixed by the owners.
• C)It has a limited number of owners.
• D)There is no organized market for its shares.

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Definitions:

Short-Run

A phase where production can be adjusted only by varying the amounts of variable inputs, with fixed inputs remaining constant.

Level of Output

The total quantity of goods or services produced by a company or economy at a given time.

Short Run

A time period in economics during which at least one input in the production process is fixed, affecting production capabilities.

Price of Capital

The cost of using capital assets to produce goods or services, often expressed in terms of interest rates or rental rates on capital equipment.