The contingent business value method determines the valuation of a business based on which of the following:
A)The likelihood of the sale taking place
B)The occurrence of events following the sale
C)The fair market value of the assets at the time of sale
D)The current profits of the business

Question

Quizplus · Accepted Answer

The contingent business value method determines the valuation of a business based on the occurrence of events following the sale, such as future revenue streams, customer retention, or contractual obligations. This method takes into account potential risks and rewards that may arise after the sale, making it a more comprehensive approach to valuation.

The Contingent Business Value Method Determines the Valuation of a Business