Which of the Following Best Explains Why Market Prices Are

question 114

Multiple Choice

Which of the following best explains why market prices are useful to a financial manager when performing a cost-benefit analysis?

• A)They can be used to determine how much an asset can be sold for.
• B)They can be used to convert different services and commodities into equivalent cash values which can be compared.
• C)They allow all commodities and services to be assigned a fixed and unchanging value.
• D)They can be evaluated to determine whether the market in which the manager exchanges goods and services offers true value.
• E)They can be used to determine the correct value for assets to be purchased.

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Definitions:

Contagious

Refers to the spread of affect, attitudes, or behaviors from one person to another through direct or indirect contact.

Brewer's Optimal

Refers to a theory or concept that isn't widely recognized or may be incorrectly cited without sufficient context. A clarification or specification might be necessary.

Distinctiveness Theory

A psychological theory which posits that individuals seek to maintain a sense of uniqueness, resulting in behaviors or attitudes that distinguish them from others.

Sociometer

A hypothetical internal gauge or mechanism within individuals that monitors the level of social acceptance or rejection they feel, influencing self-esteem.