Why Is It in General Difficult to Determine the Market

question 92

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.
• E)Buyers do not wish to reveal their bid price.

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Definitions:

Accrued Revenues

Revenues earned by a company for goods or services provided but not yet billed or received by the end of the accounting period.