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:

Satiety

is the feeling of being full or satisfied, typically experienced after eating, which reduces the desire to eat more.

Fat-soluble Vitamins

Vitamins A, D, E, and K, which are absorbed along with fats in the diet and can be stored in the body's fatty tissue.

Proteins

Large, complex molecules essential for the structure, function, and regulation of the body's cells, tissues, and organs.

Fiber

The tough, stringy part of vegetables and grains, which is not absorbed by the body but aids in a variety of bodily functions.