The Transaction Approach Is Difficult to Use Because

question 48

Multiple Choice

The transaction approach is difficult to use because

• A) transactions data are not typically as reliable as the data available for multiples analysis, especially when they are associated with a private company.
• B) transactions involving the purchase or sale of an entire business in an industry tend to occur relatively infrequently and hence the data is not very timely.
• C) the terms of the transactions can be difficult to assess.
• D) All of the above.

---

Definitions:

Electronic Funds Transfer

The digital transfer of money from one bank account to another either within the same financial institution or across different institutions.

Allocated Tips

Tips that an employer assigns to an employee in addition to the tips the employee reported, usually in the context of large food and beverage establishments.

Withholding Tables

Charts provided by the IRS that employers use to determine the amount of federal income tax to withhold from employees' wages.

Form 941

A quarterly federal tax form used by employers to report income taxes, social security tax, or Medicare tax withheld from employee's paychecks.