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What is the Fast Market Rule? The fast market rule is something that is used in the U.K. to keep the market under control when any sort of crash ha...
What is the Dow Jones Industrial Average? The Dow Jones Industrial Average is usually just called the Dow. It’s an average of 30 of the most well...
What is Arbitrage? Arbitrage is a trading strategy used to make risk-free money. The investor buys a security in one market and sells it in another...
Finance: What determines the value of a business in 90 seconds or less? 2 Views
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What determines the value of a business? The value of a business is contingent on several factors. One of the primary factors is how the business fares in terms of gross and net revenues relative to similar or rival companies in the same sector. Additional positive factors would include any proprietary advantages due to intellectual property patents, partnerships or other unique tangible or intangible assets. On the negative side, any aspects that pose additional risk aside from the company’s peers would detract from valuation.
What determines the value of a business? The value of a business is contingent on several factors. One of the primary factors is how the business fares in terms of gross and net revenues relative to similar or rival companies in the same sector. Additional positive factors would include any proprietary advantages due to intellectual property patents, partnerships or other unique tangible or intangible assets. On the negative side, any aspects that pose additional risk aside from the company’s peers would detract from valuation.
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