Ways to value a business include comparison to other firms, benchmarking, or looking at a multiple of net earnings. Any of the methods is an attempt to arrive at a ________.

Question

Quizplus · Accepted Answer

The methods of comparison to other firms, benchmarking, or looking at a multiple of net earnings are all ways to arrive at a fair market value for a business. This is the most commonly used method for valuing a business and takes into account various factors such as industry trends, financial performance, and market conditions.

Ways to Value a Business Include Comparison to Other Firms