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:

Local Levels

Refers to the specific regional or community-based tier within a broader administrative or organizational system.

Postal Service

A government or corporate-run system responsible for the delivery of mail and packages to individuals and businesses.

Police and Corrections

Components of the criminal justice system, with police forces responsible for law enforcement and maintenance of public order, and corrections involving the management of individuals who have been arrested, convicted, or sentenced.

Benefits-received Principle

A taxation theory suggesting that taxes should be levied based on the benefits received by the taxpayer from government services.