Which of the Following Statements Relating to Net Tangible Asset

question 22

Multiple Choice

Which of the following statements relating to Net Tangible Asset Backing per share (NTAB) is correct?

• A)the share price will normally be higher than the NTAB per share
• B)an excess of share price over NTAB per share
• C)if the share price is lower than the NTAB per share, the entity is a prime candidate for a takeover
• D)all the options are true

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Definitions:

Overtime Provisions

Regulations that govern the compensation for employees who work beyond the standard working hours, often entailing higher rates of pay.

Fair Labor Standards Act

A United States federal law that sets minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for full-time and part-time workers.

Classification System

A framework for categorizing and organizing elements into groups based on shared characteristics, used across various fields like biology, information management, and job grading.

Job Evaluation

A systematic process to determine the relative worth of jobs within an organization for the purpose of establishing fair pay scales.