Which of the Following Is NOT a Finding or Assumption

question 19

Multiple Choice

Which of the following is NOT a finding or assumption of capital markets research?

• A) Capital providers consider auditors increase accounting information credibility
• B) The qualification of a financial report will have a significant impact on share price
• C) The work of financial intermediaries impacts on share prices
• D) Analysts' earnings forecasts are more accurate than time-series models of earnings

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Definitions:

Offsetting Profits

Earnings that counterbalance or mitigate losses from another aspect of a company’s operations or investments.

Successful Mergers

The combining of two or more companies in a way that results in increased value generation, efficiency gains, and enhanced competitiveness in the market.

Rapid Growth

This denotes a phase where a company or economy experiences an above-average increase in revenue, production, or other significant measures over a short time.

Acquisitions

The process of obtaining control of another corporation by purchasing or exchanging equity interests or assets.