Which Statement Best Characterizes Business Valuation

question 62

Multiple Choice

Which statement best characterizes business valuation?

• A)Valuation is almost a perfect science.
• B)Since there are so many intangibles,valuation is mostly an art.
• C)The buyer determines the value of a business.
• D)Negotiation skills play an important part in valuation.

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Definitions:

Hamburgers

In an economic context, refers to a commonly cited example of a product in studies of competition, pricing, and consumer choice.

Supply Curve

An illustrated chart that displays the link between the cost of a commodity and the volume of the commodity that producers are ready to sell.

Hula Hoops

A popular toy made of a plastic tube formed into a hoop, twirled around the waist, limbs, or neck.

Firms

Business entities that produce goods or services with the aim of making a profit.