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WorksheetsBusiness Valuation Approaches
Total questions: 10
Worksheet time: 6mins
Valuation means finding the ...
Social value
Economic value
Intrinsic value
Value and price is same
True
False
"Business valuation results do not depend on assumptions."
True
False
What needs to be considered when determining the valuation of a business?
Cash flows or returns
The person selling
The person buying
Asset-based valuation is calculated by calculating the difference between the value of the TOTAL ASSETS and a business's OUTSTANDING LIABILITIES.
True
False
What does the Discounted Cash Flow (DCF) valuation consider?
the time value of money
historic cost
comparison of other businesses
Valuation should be free from any speculation
True
False
No idea
Which valuation approach is not based necessarily based on future earnings but also historical costs?
Discounted Cash Financial (DCF)
Asset-based valuation
Relative valuation
What are the 3 common business valuation approaches discussed in this section?
(a)
The Discounted Cash Flow (DCF) Analysis looks at the intrinsic value of the business - it does not compare it to other business
True
False
