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Business Worth

Identify and describe three approaches for determining a business's worth.

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Business Worth

Essentially, there are three ways to determine a business's worth: the asset approach, market approach, and income approach. The asset approach is a business valuation method that is based on the net asset value for the company. It values the company as a set of assets and liabilities. It becomes more difficult when the company has to determine not only what assets and liabilities to use, but also how ...

Solution Summary

Brief definitions to three methods of valuing a company.

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