Which of the Following Is a Disadvantage of the Market

question 18

Multiple Choice

Which of the following is a disadvantage of the market approach to valuing a business?

• A) Necessary comparisons between publicly traded and privately owned companies
• B) Unrepresentative earnings estimates
• C) Difficulty in finding similar companies for comparison
• D) All of the above

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Definitions:

False Consciousness

A term used in Marxist theory to describe the way in which material, ideological, and institutional processes in capitalist society mislead the proletariat about their own interests.

Class Consciousness

The awareness of one's place in a social class system, especially in terms of shared interests and political identity among members of the same social class.

Analytic Marxism

A school of thought that seeks to reexamine Marxist theory using tools of analytical philosophy and rational choice theory.

Rational Choice Theory

A theory in economics and sociology that assumes individuals act based on their own self-interest, carefully weighing the costs and benefits of possible actions.