A Conservative Rule of Thumb Is to Establish a Business

question 35

True/False

A conservative rule of thumb is to establish a business' worth to be 10 times the firm's most current annual profit.

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Definitions:

Scheduled

Planned or organized for a certain time or date.

Focal Date

In finance, it refers to a specific point in time used as a reference or base date for calculating the value of financial instruments or for determining the timing of cash flows.

Economic Value

An estimation of the benefit provided by a good or service to an economic agent.

Interest Rate

The percentage at which interest is charged or paid on borrowed funds, typically expressed as an annual percentage rate.