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A Disadvantage of the Market Approach to Valuing a Business

question 83

True/False

A disadvantage of the market approach to valuing a business is finding similar companies for comparison.


Definitions:

Customer Payments

The payments made by customers for products or services received from a company.

Zero-balance Account

A banking arrangement where a company’s bank account is maintained at a zero balance, with funds being transferred from a master account as needed.

Disbursement Purpose

The specific reason or objective for which funds are paid out or disbursed in a financial transaction.

Cheques Presented

Refers to the cheques that have been submitted to a bank for payment and are pending clearance.

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