A going-concern value of a business is a more relevant approach for determining a price tag for an ongoing business because it deals with the ability or capacity of a business to produce a stream of after-tax cash flows.

Question

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The going-concern value of a business is more relevant for pricing an ongoing business because it assesses the business's ability to generate future cash flows, considering its continued operation and profitability, rather than just its liquidation value.

A Going-Concern Value of a Business Is a More Relevant