The value of a business is determined by
A)what the owner believes the business is worth.
B)what a valuation formula determines its worth is to the owner.
C)what a valuation formula determines its worth is to the buyer.
D)what a buyer with the cash is prepared to pay.

Question

Quizplus · Accepted Answer

The value of a business is ultimately determined by what a buyer with the cash is willing to pay for it. While the owner's beliefs and valuation formulas can be influential, the final decision is made by the buyer.

The Value of a Business Is Determined by