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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.

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