In Valuing a Business, Analysts Must Also Consider Whether It

question 24

True/False

In valuing a business, analysts must also consider whether it is appropriate to adjust the estimated value of the business for the likelihood that the "key people" may not remain with the firm as long as expected.

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Definitions:

Eutherian Mammal

Mammals that develop within the uterus of the female and are nourished before birth through a placenta, synonymous with placental mammals.

Rodentia

An order of mammals also known as rodents, characterized by a pair of continuously growing incisors in both the upper and lower jaws that must be kept short by gnawing.

Eutherian Mammal

A mammal whose offspring is born at a more mature stage after developing in a uterus with a placenta.

Carnivora

An order of mammals that predominantly eat meat, including species such as lions, bears, and domestic dogs.