Companies that help to set benchmarks are classified as__________?

✅ C. Economic life

Option A : Minimum life Option B : Present value life Option C : Economic life Option D : Transaction life Option E : Correct Answer : Economic life Read more

✅ B. It reduces the real value of cash flows received in the future

Option A : It increases the real value of cash flows received in the future Option B : It reduces the real value of cash flows received in the future Option C : It has no effect on real value of cash flow received in the future Option D : None of these Option E : Correct Answer : It… Read more

✅ D. Firm cannot control

Option A : Industry cannot control Option B : Industry cannot control Option C : Firm must control Option D : Firm cannot control Option E : Correct Answer : Firm cannot control Read more

✅ D. Bond markets

Option A : Organized markets Option B : Trade markets Option C : Counter markets Option D : Bond markets Option E : Correct Answer : Bond markets Read more

✅ C. Common size analysis

Option A : Graphical analysis Option B : Preference analysis Option C : Common size analysis Option D : Returning analysis Option E : Correct Answer : Common size analysis Read more

✅ D. Market value ratios

Option A : Marginal ratios Option B : Equity ratios Option C : Return ratios Option D : Market value ratios Option E : Correct Answer : Market value ratios Read more

✅ B. Ideal to rank the mutually exclusive investments

Option A : Most widely used Option B : Ideal to rank the mutually exclusive investments Option C : Easily communicated and understood Option D : Can be estimated even without knowing the discount rate Option E : Correct Answer : Ideal to rank the mutually exclusive investments Read more

✅ D. None of Them

Option A : Relieves the firms responsibility towards society Option B : Does not relieve the firms responsibility towards society Option C : Partially relives the firms responsibility towards society Option D : None of Them Option E : Correct Answer : Does not relieve the firm’s responsibility towards society Read more