If You Want to Buy a Business That Is Growing

question 21

Multiple Choice

If you want to buy a business that is growing rapidly, what is the best valuation method to use to determine a fair price for it?

• A) Future earnings method
• B) Book value method
• C) Market-based approach
• D) Comparison approach
• E) Intuitive method

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Definitions:

Outcome-Based Systems

Systems focused on achieving specific results or outcomes, often in contrast to process-oriented approaches.

Measurable

refers to the ability of something to be quantified or assessed using numerical data.

Supervision

Supervision involves overseeing the performance and tasks of employees to ensure that organizational goals are met efficiently and effectively.

Marketing Plans

Detailed, strategic documents that outline the marketing efforts intended to achieve business goals over a specific period.