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Imagine That You Are in Charge of a Football Team

question 73

Essay

Imagine that you are in charge of a football team. Several of the players (including the quarterback and the running back) get most of the glory when the team succeeds. However, other players, like the linebackers, have to do a lot of very hard and highly skilled work in order for the team to win. Use the insights provided by Chapter 5 to describe what steps you would take to motivate the linebackers to work hard.


Definitions:

Fair Value Enterprise Method

A valuation technique that estimates the price at which an entire business would change hands, reflecting the present value of future earnings.

Total Assets

represent the summation of everything a company owns, both current and non-current, that can be used for paying debts, investments, or other operations.

Fair Value Enterprise Method

A methodology for valuation that estimates the value of an entire enterprise as if it were traded in the market, based on the fair value of its assets and liabilities.

Consolidated Balance Sheet

A financial statement that aggregates the financial position of a parent company and its subsidiaries, presenting them as a single economic entity.

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