Ways to Value a Business Include Comparison to Other Firms

question 31

Multiple Choice

Ways to value a business include comparison to other firms, benchmarking, or looking at a multiple of net earnings. Any of the methods is an attempt to arrive at a ________.

• A) Fair market value
• B) Future value
• C) Most profitable price
• D) Net present value
• E) Gross profit

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Definitions:

Labor

The effort by humans directed toward producing goods and services in an economy.

Management

Management involves the planning, organizing, leading, and controlling of an organization's resources to achieve specific objectives.

Common Goals

Objectives shared by a group of people, aiming to achieve a mutual outcome or interest.

Income Going

The flow of earnings or revenue generated from economic activities or investments over a given period.