A Method of Valuing a Business That Recognizes That a Buyer

question 12

True/False

A method of valuing a business that recognizes that a buyer is purchasing the future income (earning) potential is the earnings approach.

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Definitions:

Output Approach

A method measuring economic or productivity levels by the quantity of goods and services produced.

Recycling

The process of converting waste materials into new products to prevent waste of potentially useful materials, reduce the consumption of fresh raw materials, and lower greenhouse gas emissions.

Environmental Concerns

Environmental concerns involve issues that affect the earth's ecosystems and the wellbeing of its inhabitants, such as pollution, biodiversity loss, climate change, and resource depletion.

Rhizofiltration

A water remediation technique that uses plants, particularly their roots, to absorb, precipitate, and concentrate contaminants from polluted water.