Asked by roshell ayeshma on May 04, 2024

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The ______ approach to determining a company's worth involves the cost to recreate the operating assets of the business.

A) asset-based
B) income
C) market
D) liability-based

Asset-Based

An approach or strategy that focuses on utilizing a company's tangible and intangible assets to secure financing or drive performance.

Operating Assets

Assets that are used for the day-to-day functioning of a business, contributing directly to its earnings.

Income

The financial gain or revenue received by an individual or business, typically from labor, investments, or sales.

  • Comprehend various approaches to determining a company's worth.
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Verified Answer

YA
Yasmin AmirahMay 09, 2024
Final Answer :
A
Explanation :
The asset-based approach to valuation focuses on the cost to recreate or replace the operating assets of a business, essentially determining its worth based on the sum of its parts.