When Looking at NAICS Codes

question 169

Multiple Choice

When looking at NAICS codes:

• A) The fewer numbers in the code, the more general the industry classification is.
• B) The more numbers in the code, the more general the industry classification is.
• C) The fewer numbers in the code, the more specific the industry classification is.
• D) The United States is the only country to collect data that groups firms in similar lines of business.
• E) None of these alternatives is correct.

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Definitions:

Intrinsic Value

The actual value of a company or an asset based on underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.

P/E Multiple

Price-to-Earnings ratio, a valuation metric calculated by dividing the current market price of a stock by its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

EPS

Earnings Per Share; a company's profit divided by its number of common outstanding shares, indicating the company’s profitability.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company based on fundamentals and independent of market price.