In the context of business valuation, which of the following methods works best for firms with hard resources and not an Internet business?
A)Asset-based valuation
B)Price/earnings valuation
C)Discounted future net cash flow
D)Market estimation valuation

Question

Quizplus · Accepted Answer

Asset-based valuation works best for firms with hard resources, as it calculates the value based on the assets owned by the company. This method is not suitable for Internet businesses, which may not have many physical assets but may have high brand value and customer base. Price/earnings valuation, discounted future net cash flow, and market estimation valuation are more suitable for such businesses.

In the Context of Business Valuation, Which of the Following