Under the Capitalized Earnings Approach to Valuing an Existing Business

question 91

True/False

Under the capitalized earnings approach to valuing an existing business, most normal-risk businesses use a rate-of-return factor ranging from 20 to 25 percent.

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Definitions:

Impulse Control

The ability to resist or delay an impulse, drive, or temptation to act.

Autonomy

The capacity and right of individuals to make their own choices and decisions independently.

Assert One's Needs

The act of confidently expressing or standing up for one's own requirements or interests.

Rates of Depression

The frequency or number of instances of depression within a specific population or demographic.