Discretionary Assets Are Undervalued or Redundant Assets Not Required to Run

question 103

True/False

Discretionary assets are undervalued or redundant assets not required to run the acquired business and which can be used by the buyer to recover a portion of the purchase price.

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Definitions:

Organizational Structure

The arrangement of activities, processes, reporting hierarchies, and communication pathways that connect the various segments of an organization.

Different Departments

Refers to the various specialized divisions within an organization, each responsible for specific tasks or functions.

Line Positions

Roles within an organization that are directly involved in achieving its core business objectives, typically involving decision-making authority.

Authority

Authority refers to the power or right to give orders, make decisions, and enforce obedience in a particular area or domain.