There Are Numerous Techniques Used for Valuing a Company, but They

question 6

Multiple Choice

There are numerous techniques used for valuing a company, but they can be grouped into three basic methods. Which of the following is NOT one of those methods?

• A) Market-based valuation
• B) Asset-based valuation
• C) Expense-based valuation
• D) Cash flow-based valuation

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Definitions:

Legal Obligation

A duty enforced by law, requiring an individual or organization to follow or avoid a particular course of action.

Moral

Pertaining to the principles of right and wrong behavior and the goodness or badness of human character.

Partnership Termination

The process of dissolving a business partnership, involving the liquidation of assets, settlement of debts, and distribution of remaining assets among partners.

Liquidation

The process of converting assets into cash, often in the context of dissolving a company or settling debts.