A disadvantage of the market approach to valuing a business is the difficulty of finding similar companies for comparison.

Name: A disadvantage of the market approach to valuing a business is the difficulty of finding similar companies for comparison.
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Question

Quizplus · Accepted Answer

The market approach to business valuation relies on comparing the subject business to similar companies that have been recently sold. However, finding truly comparable companies can be challenging, especially in niche industries or markets.

A Disadvantage of the Market Approach to Valuing a Business