Which of the Following Statements Are Correct

question 3

Multiple Choice

Which of the following statements are correct?
i.Going-concern value of a firm is equal to the present value of expected future cash flows to owners and creditors.II.When an acquiring firm purchases a target firm's equity,the acquirer need not assume the target's liabilities.III.The market value of a public company reflects the worth of the business to minority investors.IV.The fair market value of a business is usually the lower of its liquidation value and its going-concern value.

• A) I and III only
• B) II and IV only
• C) II and III only
• D) I,II,and III only
• E) II,III,and IV only

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Definitions:

Barack Obama

The 44th President of the United States (2009-2017) and the first African American to hold the office, known for significant healthcare reform and a comprehensive approach towards global diplomacy.

Healthcare Reform

Efforts and policies implemented to improve, expand, or alter healthcare systems within a country to ensure more accessible, affordable, and quality healthcare services for the population.

Debt Ceiling

A legislative limit on the amount of national debt that can be incurred by the U.S. Treasury, thus limiting how much money the federal government may borrow.

Social Spending

Government expenditure on social programs that aim to improve the welfare of citizens, such as healthcare, education, housing, and social security.