In valuing a business, the methods that buyers and sellers can use include ________.
A) market-based value
B) book value
C) future earnings
D) Any of the above.

Question

Quizplus · Accepted Answer

Buyers and sellers can use any of the above methods to value a business, depending on the specific circumstances and goals of the transaction. Market-based value looks at recent sales of similar businesses in the same industry to determine a fair price, while book value considers the value of a company's assets minus its liabilities. Future earnings takes into account projected earnings and growth potential to calculate a business's value. Ultimately, the most appropriate method will depend on factors such as the industry, size of the business, and financial performance.

In Valuing a Business, the Methods That Buyers and Sellers