Which Statement Best Characterises Business Valuation

question 61

Multiple Choice

Which statement best characterises business valuation?

• A)Valuation is almost a perfect science.
• B)Since there are so many intangibles, valuation is mostly an art.
• C)The buyer determines the value of a business.
• D)Negotiation skills play an important part in valuation.

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Definitions:

Tax Base

The total amount of assets or income that can be taxed by a government, serving as a critical source of fiscal revenue.

Assets

Resources owned by a business or individual that have economic value and can be converted into cash.

Liabilities

Financial obligations or debts that an entity owes to another party, which must be settled over time through the transfer of economic benefits.

Net Worth

The total value of an individual's or entity's assets minus their liabilities.