Which of the Following Statements About Valuing a Business Is

question 75

Multiple Choice

Which of the following statements about valuing a business is true?

• A) The balance sheet technique is the best way to value a business.
• B) Business valuation is partly art and partly science.
• C) Buyers should rely on the seller's industry expertise and years of experience to determine what his company is worth.
• D) Business valuation processes are consistently misleading regarding the future earning potential of a business.

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Definitions:

Cultural Superiority

The belief that one's own culture is superior to others, often leading to the imposition of one's cultural values on other societies.

Indigenous Groups

Ethnic groups who are the original inhabitants of a given region, prior to colonization or the formation of state boundaries.

Printing Press

A mechanical device for applying pressure to an inked surface resting upon a print medium (such as paper or cloth), thus transferring the ink, marking a pivotal moment in the history of publishing and the spread of information.