Which of the Following Is NOT an Accepted Approach for Determining

question 43

Multiple Choice

Which of the following is NOT an accepted approach for determining a business' worth?

• A) determining what the firm owns
• B) determining what the firm earns
• C) determining what the firm's return on investment has been
• D) determining what the firm will bring in the market
• E) All of the above are accepted approaches.

---

Definitions:

Long Run

In economics, the long run refers to a period in which all inputs or factors of production can be varied and no costs are fixed.

Capital Intensity Ratio

A metric that measures the amount of assets required to generate a dollar of revenue, indicating how much capital is invested in production.

Total Liabilities

The combined debts and obligations that a company or individual owes to outside parties, indicating the total amount owed.

Net Income

Company's earnings following the deduction of all expenses and taxes from total revenue.