The value of a going-concern business is influenced primarily by its
A)length of time in business.
B)shareholders' personal wealth.
C)income-earning potential.
D)location.

Question

Quizplus · Accepted Answer

The income-earning potential of a business is the primary factor that affects its value. A business that generates high revenue and profits will have a higher value than one that does not. Length of time in business, shareholders' personal wealth, and location can be secondary factors that also affect the value of a business, but they are not as influential as income-earning potential.

The Value of a Going-Concern Business Is Influenced Primarily by Its