In valuing a business, the methods that buyers and sellers can use include ________.

Question

Quizplus · Accepted Answer

Buyers and sellers can use all of the above methods to value a business. Market-based value considers the current market conditions and comparable transactions. Book value looks at the business' assets and liabilities. Future earnings project the business' future cash flows and potential for growth. Using a combination of these methods can provide a more accurate valuation of the business.

In Valuing a Business, the Methods That Buyers and Sellers