What Is NOT a Reason Why Transaction Comps Generally Provide

question 27

Multiple Choice

What is NOT a reason why transaction comps generally provide a higher multiple range than trading comps?

• A)Buyers pay control premiums
• B)Buyers often have the opportunity to realize synergies
• C)Buyers receive the right to control decisions
• D)Transaction comps are more accurate than trading comps

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Definitions:

Dominion of New England

An administrative union of English colonies in North America (1686–1689), including New England and later New York and New Jersey, created by King James II to tighten control over colonial affairs.

Bacon's Rebellion

A 1676 uprising in the Virginia Colony, led by Nathaniel Bacon, which was fueled by discontent among frontiersmen with colonial policies toward Native Americans and governance.

Native American Territory

Areas historically set aside within the United States for the use and residence of Native American tribes and nations.

Indentured Servants

Individuals who agreed to work for a specific number of years in exchange for passage to America, room, board, and freedom dues.