Question

Explain at least one important difference in the ways an economist and a business person would view the valuation of a f...

Explain at least one important difference in the ways an economist and a business person would view the valuation of a firm

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Economist's view of valuation of firm:

Economic valuation is an attempt to provide an empirical account of the value of services and amenities or of the benefits and costs of proposed actions (projects or policies) that would modify the flow of services and amenities. It provides a utilitarian account, that is, an account of contribution to the satisfaction of human preferences.

Business view of valuation of firm :

It basically includes a review of financial statements, discounting cash flow models and similar company comparisons. Valuation is also important for tax reporting. The Internal Revenue Service (IRS) requires that a business is valued based on its fair market value.

Add a comment
Know the answer?
Add Answer to:
Explain at least one important difference in the ways an economist and a business person would view the valuation of a f...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT