The Value of the Firm Is The

question 44

Multiple Choice

The value of the firm is the:

• A) current value of profits.
• B) present discounted value of all future profits.
• C) average value of all future profits.
• D) total value of all future profits.

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Definitions:

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty or reliability.

Threat

An influence technique that is a communication taking the general form, “If you don’t do X (which I want), then I will do Y (which you don’t want).” See also Promise.

Reactance

Resistance to persuasion attempts that occurs when the persuasion attempt threatens the independence or freedom of the target.

Boomerang Effect

A phenomenon where an attempt to change behavior results in the opposite effect, particularly in persuasive communication.