Question

Because of data limitations (e.g. audited statements, actuarial assumptions, etc.) valuation of private firms often requires...

Because of data limitations (e.g. audited statements, actuarial assumptions, etc.) valuation of private firms often requires more subjective adjustments than for than those of public firms. True or False

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

For a public company, publishing the audited financial statements in public is mandatory and the audited financial statements help in understanding the different assumptions and audited statements which helps in valuing the firm.

On the other hand in case of private companies, there is no requirement of audited financial statement to be published in public. Due to unavailability of these data, it becomes difficult to make accurate assumptions while valuing the company and hence subjective adjustment is required to value the private company.

Thus the statement is TRUE.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A tough test for audit industry : With audit exemption here to stay, small accounting firms...
A tough test for audit industry : With audit exemption here to stay, small accounting firms must change. NOW that the Companies Act 2016 exempts certain private companies – mainly dormant and small ones – from having to appoint auditors, the audit industry should rise to the challenge by finding other ways to remain relevant to the SME sector. That’s the suggestion from the Companies Commission of Malaysia (CCM), the regulator that has the power to grant the exemptions. The...
QUESTION 26 Cultural competency in health services is essential because:       of the rapidly increasing immigrant population...
QUESTION 26 Cultural competency in health services is essential because:       of the rapidly increasing immigrant population in America the degree to which disparity exists in health outcomes for minority populations in America lack of cultural competency will ultimately increase costs for the system       all of the above 1 points    QUESTION 27 Which of the following is a CULTURAL argument about the increasing prevalence of obesity as countries become more developed? A. A large or obese body represents a...
this is the book name. Data Structures and Abstractions with Java 1) Description: The sample programs...
this is the book name. Data Structures and Abstractions with Java 1) Description: The sample programs in Chapter 1 of your textbook are not complete. They are used for illustration purpose only. The implementation of Listing 1-1 on page 39 is explained in Chapter 2. And, in order to see the result of using it, we will need the following set of files: i. BagInteface.java – the specification only. ii. ArrayBag.java – the implementation of BagInerface.java. iii. ArrayBagDemo.java – a...
11.Which of the following statements holds true for the term “public corporation”? Select one: a. It...
11.Which of the following statements holds true for the term “public corporation”? Select one: a. It refers to a legally independent business that protects its owners from all liability claims made against the company and has shares available for purchase by the general population. b. It refers to a legally independent business that protects its owners from all liability claims made against the company and has share allocation limited to a group or single person. c. It refers to an...
All of these are True or False question, please find full correct and precise answers with...
All of these are True or False question, please find full correct and precise answers with Gregory and Stuart, Comparing Economic System in the Twenty-First Century, 7th edition. 1.Classification criteria for economic systems include decision-making systems, mechanism for information and coordination, incentive structures, property tights and mechanism for public choices. 2.All economic systems can be classified as market capitalism or centrally planned socialism. 3.Generally speaking, transition economies emerging from the former Soviet Union have done least well with transition, while...
Answer True or False: 1. Classification criteria for economic system include decision-making systems, mechanisms for information...
Answer True or False: 1. Classification criteria for economic system include decision-making systems, mechanisms for information and coordination, incentive structures, property rights, and mechanisms for public choices. 2. All economic systems can be classified as market capitalism or centrally planned socialism. 3. Generally speaking, transition economies emerging from the former Soviet Union have done least well with transition, while those of Central and Eastern Europe have done the best. 4. Capitalism relies primarily on material incentives, while planned socialism and...
3.When closing entries are made:Immersive Reader (1 Point) All ledger accounts are closed to start the...
3.When closing entries are made:Immersive Reader (1 Point) All ledger accounts are closed to start the new accounting period. All real accounts are closed but not the nominal accounts. All balance sheet accounts are closed. All temporary accounts are closed but not the permanent accounts. All permanent accounts are closed but not the nominal accounts. 4.A wholesaler is an intermediary that buys products from manufacturers or other wholesalers and sells them to consumers.Immersive Reader (1 Point) True False 5.The Merchandise...
step by step solution for the below question please Flag this Question Question 11 pts What...
step by step solution for the below question please Flag this Question Question 11 pts What is the difference between positive economics and normative economics? Group of answer choices Positive economics deals with dynamic systems, while normative economics focuses on static systems. Normative economics deals with how the world actually works, whereas positive economics focuses on what people ought to do. Positive economics requires making value judgments, while normative economics relies solely on factual statements. Normative economics applies in cases...
Answer 4 questions you feel confidently about Elizabeth has developed a promotional campaign for a client...
Answer 4 questions you feel confidently about Elizabeth has developed a promotional campaign for a client that promises a hefty return for her owned cash-strapped business. While the campaign does not violate any laws, it might be considered manipulative and misleading, especially when targeted toward senior citizens. If Elizabeth were to consult the AMA Code of Ethics she’d discover: - there is a high value placed on creative approaches for clients which can outweigh other concerns if the client or...
Answer 4 questions you feel confidently about Elizabeth has developed a promotional campaign for a client...
Answer 4 questions you feel confidently about Elizabeth has developed a promotional campaign for a client that promises a hefty return for her owned cash-strapped business. While the campaign does not violate any laws, it might be considered manipulative and misleading, especially when targeted toward senior citizens. If Elizabeth were to consult the AMA Code of Ethics she’d discover: - there is a high value placed on creative approaches for clients which can outweigh other concerns if the client or...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT