Which of the Following Statements About Valuing a Business Is

question 68

Multiple Choice

Which of the following statements about valuing a business is true?

• A)The balance sheet technique is the best way to value a business.
• B)Business valuation is partly art and partly science.
• C)Buyers should rely on established "rules of thumb" to decide what a company is worth.
• D)The primary reason buyers purchase existing businesses is to get their current earning potential.

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Definitions:

Specific Task

A particular duty or responsibility assigned or undertaken, characterized by its unique requirements and objectives.

Negotiated ADR Systems

Negotiated ADR (Alternative Dispute Resolution) Systems refer to structured processes for resolving disputes outside the courtroom through mutual agreement, incorporating negotiation techniques.

ADR Systems

Alternative Dispute Resolution systems, which include various methods such as arbitration and mediation to resolve disputes outside of the judicial process.

Symmetric Prescriptive Advice

Recommendations that apply equally to all parties involved in a situation or conflict, advocating for similar actions or behaviors.