Which of the Following Valuation Techniques Is Best Suited for Determining

question 38

Multiple Choice

Which of the following valuation techniques is best suited for determining the value of service businesses?

• A) Discounted future earnings approach
• B) Balance sheet technique
• C) Adjusted balance sheet technique
• D) Excess earnings approach

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Definitions:

Carbon Dioxide

Originating from the combustion of carbonaceous materials and the process of respiration, this gas lacks color and smell. It is a naturally existing element of air that plants use in photosynthesis.

Citric Acid Cycle

The Citric Acid Cycle, also known as the Krebs cycle, is a sequence of chemical reactions used by all aerobic organisms to release stored energy through the oxidation of acetyl-CoA derived from carbohydrates, fats, and proteins.

Glycolysis

The metabolic pathway that breaks down glucose into pyruvate, generating energy in the form of ATP and NADH, occurring in the cytosol of cells.

Substrate-Level

Substrate-level refers to a biochemical process that involves the direct transfer of a phosphate group from a substrate molecule to ADP to form ATP, bypassing the need for an electron transport chain.