An Important Thing to Remember in Valuing a Business Is

question 74

True/False

An important thing to remember in valuing a business is that the value of a business changes over time.

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Definitions:

Capital Lease

A lease agreement in which the lessee essentially acquires the ownership rights of the leased asset, also referred to as a finance lease.

Residual Value

The estimated salvage value or the worth of an asset at the end of its useful life.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset over a specified period.

Lease Liability

An obligation representing the present value of future lease payments that a lessee is committed to making under a lease agreement.