Which Approach Uses One Year's Stabilized Income to Determine Value

question 32

Multiple Choice

Which approach uses one year's stabilized income to determine value?

• A)yield capitalization
• B)sales comparison
• C)rooms revenue multiplier
• D)direct capitalization

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Definitions:

Herfindahl Index

A measure used in competition law and antitrust analysis, calculated by summing the squares of the market shares of all firms within an industry.

Natural Monopoly

A market situation where a single firm can supply a product or service to an entire market at a lower cost than two or more firms could.

Dominant Firm Oligopoly

A market structure in which a single firm has a predominant share of the total market, and the actions of this firm significantly influence the entire market's dynamics.

Industrial Regulation

Governmental regulation of industries to control and monitor their activities for the public good, often to ensure competition and prevent monopolies.