A Method of Determining the Value of a Business Based

question 39

Multiple Choice

A method of determining the value of a business based on its profit potential is known as a(n)

• A) Balance sheet method of business valuation
• B) Asset method of business valuation
• C) Income statement method of valuation
• D) Cash-flow method of valuation

---

Definitions:

Organizational Processes

Are mechanisms and structured activities within an organization that contribute to its effective functioning, including decision-making, communication, and coordination.

Work Processes

The series of activities, tasks, or steps designed to produce a product or service.

Influence

The capacity or power of persons or things to be a compelling force on the actions, behavior, opinions, etc., of others.

Outcomes

The results or consequences of actions, behaviors, or processes, which can be positive, negative, or neutral.