A Method of Determining the Value of a Business Based

question 97

Multiple Choice

A method of determining the value of a business based on its profit potential is known as a/an ______.

• 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

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Definitions:

Fiduciary Duty

An obligation to act in the best interest of another party, typically in a relationship involving trust, such as between a trustee and beneficiary.

Partnership Property

Assets that are owned by a partnership and used in the conduct of its business activities.

Business Competition

The rivalry among companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.

Information

Data, facts, or details that provide knowledge about something or someone.