Which of the Following Methods Is Used Under the Income

question 16

Multiple Choice

Which of the following methods is used under the income approach of business valuation?

• A) net asset value method
• B) capitalization of earnings method
• C) dividend payout method
• D) guideline transaction method

---

Definitions:

Capacitor

Electrical charge storage device. Also known as a condenser.

Step-Up Transformer

A transformer that induces a higher voltage in its secondary coil by using a larger number of windings than in the primary coil.

Ignition Coil

A component of the ignition system in vehicles that transforms low voltage into the high voltage required to spark the spark plugs.

Circuit Paths

The routes along which electrical current flows within a circuit, connecting components such as switches, batteries, and loads like lights or motors.