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Legal issues must always be the first priority in decision making.
Equity Method
An accounting approach used to reflect the value of an investment in another company, where the investment's value is adjusted based on the investor's share of the investee's profits or losses.
Par Value
The face value of a bond or stock as stated by the issuing company, which does not necessarily reflect its market value.
Fair Value
An estimated market value of an asset or liability, derived from current prices in an active market.
Amortization
The act of gently reducing the initial value of an intangible asset over the time it benefits the entity.
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