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BaLLatris [955]
2 years ago
13

What are the main attractions and limitations of the comparator approach in valuation?

Business
1 answer:
postnew [5]2 years ago
3 0
<h3> The main attractions of comparator approach in valuation?</h3>

It is useful in comparing prices and monitoring trends of goods sold

It uses a company financial information and it can be used to understudy a competitor.

<h3>The main limitations of comparator approach in valuation?</h3>

It requires financial information for other company which may not be easily accessible.

<h3>What is comparator approach in valuation?</h3>

The approach is used to compare sales of similar goods in a particular location.

The analysis is done for goods that are sold within a period of time that is not too far from each other.

Learn more on comparator approach below

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a. Attracting large amounts of capital is more difficult for partnerships than for corporations because of such factors as unlim
lidiya [134]

Answer:

The statement is: True.

Explanation:

Partnerships are organizations that share ownership of two or more people. Corporations, on the other hand, are owned by shareholders who decide how and who will run the business. Partnership owners are individually liable, implying that the owners' assets can be taken away in front of the debt.  

Debt or legal responsibility in companies is not individual. Liability is only dealt with at the company level. In reality, partnerships require reorganization when one of the partners is quitting or passing away, something that does not happen to corporations. For these factors, the majority of associations find it difficult to raise significant amounts of funds relative to companies.

7 0
2 years ago
The Wyeth Corporation produces three products, A, B, and C, from a single raw material input. Product A can be sold at the split
Degger [83]

Answer:

It is preferable to further process Product A.

Explanation:

Product should be processed further before sale if the net incremental benefits from further processing is positive.

The net incremental benefits from further processing is increase in revenue when further processed less further costs of processing.

Increase in revenue=$58,000-$40,000

                                 =$18,000

Further processing costs=$15,000

Net incremental benefits=$18,000-$15,000

Net incremental benefits=$3,000

Since processing further brings a net benefit of $3,000, Product A should be further processed before being sold.

8 0
3 years ago
Read 2 more answers
The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities,such as trade sho
love history [14]

Answer: Sales promotion

Explanation:

Promotion includes all the techniques sellers use to motivate/persuade people to purchase their product or services.

Sales promotion is a part of the promotional mix that uses media and non-media outlets to improve product awareness, increase consumer demands and marketability. It helps in stimulating consumers' interest in a product.

Sales promotion programs are designed to enhance personal selling, advertising, public relations, and other promotional efforts.

Sales promotions can take place both within/inside and outside an organization. It helps to attract new customers, with old existing customers and ease competition.

3 0
3 years ago
Read 2 more answers
You invest all the money you earned during your summer sales job (a total of $45,000) into the stock of a company that produces
erica [24]

Answer:

The annual rate of return of the invesment will be -14,97%

Explanation:

The initial investment is 45.000 and after 5 years the value of the investment is only 20.000. Here we can see a destruction of value (20.000 < 45.000). In finance, the time takes an essential part in calculation, so through the interest rate we calculated how bad was the investment in annual terms. The formula is as follows: Final investment value=(Initial investment*(1+interest rate)^(total years)) in our case would be: 20.000=(45.000*(1+interest rate)^(5)) From this formula we got -14,97%

8 0
2 years ago
The workout is also referred to as the _____________ phase of a training session.
Ber [7]
A workout is also referred to as the conditioning phase of a training session
5 0
3 years ago
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