Multiple choice softskills planning

What is the best approach to valuing a business?

  1. Number of employees

  2. Degree of Customers

  3. Net Present Value

  4. Nature of Tangible Asset

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Net Present Value (NPV) is the most widely accepted method for business valuation as it accounts for future cash flows discounted to present value. Number of employees and tangible assets are incomplete measures, and 'Degree of Customers' is not a standard valuation metric.