In the Knowledge Economy,if a Large Portion of Company Value

question 79

Multiple Choice

In the knowledge economy,if a large portion of company value is in intellectual and human assets,the difference between the market value and book value of the company should ________ a company with mostly physical and financial assets.

• A) be equal to
• B) not be correlated with
• C) be smaller than
• D) be larger than

---

Definitions:

Detachable Stock Warrants

Financial instruments that grant the holder the right to purchase company stock at a specified price and are separable from the bond or stock with which they were issued.

Additional Paid-In Capital

Additional paid-in capital refers to the amount of money investors have paid for shares in a company over and above the stated par value of the shares.

Expired Warrants

Warrants that have reached their expiration date and are no longer valid or exercisable to buy the underlying security at a predetermined price.

Additional Paid-In Capital

The amount of money paid by investors to a company above the par value of the shares during common or preferred stock issuance.