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In valuing a business, analysts must also consider whether it is appropriate to adjust the estimated...

In valuing a business, analysts must also consider whether it is appropriate to adjust the estimated value of the business for the likelihood that the “key people” may not remain with the firm as long as expected.

TRUE

FALSE

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Answer #1

In valuing a business, analysts must also consider whether it is appropriate to adjust the estimated value of the business for the likelihood that the “key people” may not remain with the firm as long as expected.

Statement is True

Explanation:

While valuing a firm it is necessary to take into consideration the management and Key Management Persons(KMP) and their association with the firm as KMP are the strategic decision makers in the firm and strategic decisions decide the future of firm's growth.

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