The valuation of a firm's worth
A) is an exact science.
B) requires both qualitative and quantitative skills.
C) is based solely on financial facts.
D) is known only to the firm's accountants.
E) is static.

Question

Quizplus · Accepted Answer

Valuing a firm's worth requires both qualitative and quantitative skills. While financial data such as revenue, profit margins, and assets are important, other factors such as the strength of the management team, market competition, and industry trends must also be taken into account. Therefore, a combination of financial analysis and qualitative assessment is needed for an accurate valuation.

The Valuation of a Firm's Worth