An important issue when valuing a business is whether a controlling ownership interest or a minority interest is being valued.

Question

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The value of a company can vary depending on whether the interest being valued is a controlling ownership interest or a minority interest. A controlling ownership interest generally commands a higher value because it gives the owner more control over the company's operations and decision-making. A minority interest, on the other hand, may have limited control and therefore be considered less valuable. As such, it is important to specify which type of interest is being valued in order to accurately determine the value of the business.

An Important Issue When Valuing a Business Is Whether a Controlling