alleryStart learning →Which three pillars are commonly used to value business entities?
ABudgeting, forecasting and auditing
BRatio, trend and variance analysis
CPayback, ARR and IRR analysis
DDCF, asset-based and precedent transactions
Answer & Solution
Correct answer: D. DCF, asset-based and precedent transactions
Business valuation rests on discounted cash flow, asset-based valuation and comparable or precedent transaction analysis.
Keep practising Business Valuation
Browse all Business Valuation questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
How is marketability of a business interest defined?A controlling interest is defined as an investor acquiring more than what share of a compaWhich level of value is lowest for equity interests in a private firm?A buyer pays a 100% control premium over the minority price. What is the implied minority A private firm valued using listed-peer multiples is usually adjusted for what?In the guideline public company method, the comparison with listed firms is expressed as wWhy is the asset-based approach weak for a going concern?Why do some critics doubt the objectivity of the WACC method?