Companies with the Highest Ratios of Market Value to Book

question 28

True/False

Companies with the highest ratios of market value to book value tend to be those,either with valuable brands or valuable proprietary technologies.

---

Definitions:

Retained Earnings

The portion of net profits not distributed as dividends to shareholders but retained by the company for reinvestment or to pay off debt.

Sole Shareholder

An individual or entity that is the only owner of all the shares of a company, thus having complete control over its operations.

Closing Entry

Entries recorded at the conclusion of a financial period for the purpose of shifting balances from temporary to permanent accounts.

Worksheet

A document used by accountants to organize various financial statements and supporting details during an accounting cycle.