All of the Following Represent Common Sources of Value in Appraising

question 13

Multiple Choice

All of the following represent common sources of value in appraising private or publicly owned businesses except for

• A) Intellectual property
• B) Customer lists
• C) Licenses
• D) Contingent liabilities
• E) Employment contracts

---

Definitions:

Generates Revenues

Generates revenues refers to the activities or strategies a company employs to earn income from its business operations.

Profitability

A measure of the efficiency and financial success of a company, usually determined by the ratio of its profits to its revenues.

Controllable Costs

Expenses that can be managed or influenced by decisions made by a company's management.

Noncontrollable Costs

Costs that cannot be influenced or altered by the actions of a manager or business unit, often determined by external factors.