Teaching MPPSC Assistant Professor Mock Test Series 2025 Business Environment and International Business
Assertion (A): According to Tobin's Q-theory, when the Q ratio is greater than one, it indicates an undervaluation of the firm's assets.
Reason (R): A Q ratio greater than one signifies that the market value of a firm's assets is above their replacement cost, encouraging investment.
1
Both A and R are correct.
2
Both A and R are incorrect.
3
A is incorrect, R is correct but does not correctly explain A)
4
Both A and R are correct. R is not correct explanation of A