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  • Fall 2022 - MGT602 - 1 - SOL

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    Asif Altaf
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    The document discusses two approaches for valuing a business - asset-based valuation and cash flow-based valuation. It determines that asset-based valuation is suitable for valuing the business because the business is closed, its physical assets can be evaluated, and the approach is buyer-friendly for inexperienced entrepreneurs. Cash flow-based valuation is deemed not suitable as the business's past cash flows are unavailable, future cash flows cannot be predicted, and the approach is not suitable for valuing a business owned by inexperienced sole proprietors.

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    Fall 2022_MGT602_1_SOL

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    The document discusses two approaches for valuing a business - asset-based valuation and cash flow-based valuation. It determines that asset-based valuation is suitable for valuing the business because the business is closed, its physical assets can be evaluated, and the approach is buyer-friendly for inexperienced entrepreneurs. Cash flow-based valuation is deemed not suitable as the business's past cash flows are unavailable, future cash flows cannot be predicted, and the approach is not suitable for valuing a business owned by inexperienced sole proprietors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    12 views1 page

    Fall 2022 - MGT602 - 1 - SOL

    Uploaded by

    Asif Altaf
    The document discusses two approaches for valuing a business - asset-based valuation and cash flow-based valuation. It determines that asset-based valuation is suitable for valuing the business because the business is closed, its physical assets can be evaluated, and the approach is buyer-friendly for inexperienced entrepreneurs. Cash flow-based valuation is deemed not suitable as the business's past cash flows are unavailable, future cash flows cannot be predicted, and the approach is not suitable for valuing a business owned by inexperienced sole proprietors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
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    Tentative Solution

    Fall 2022
    Entrepreneurship (MGT602)
    Assignment No.1

    Approach Decision Logic (3)


    Asset- Suitable  Business is already closed.
    Based  Physical assets can be evaluated.
    Valuation  Buyer friendly approach suitable for naive entrepreneurs.
    Approach.
    Cash Not Suitable  Past Cash flows record is not available.
    Flow-  Future Cash flows can not be predicted for evaluation
    Based purpose.
    Valuation  Approach is not suitable for naive investors-Sole
    Approach proprietors.

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