Answered: State five (5) reasons for valuing a…

State five (5) reasons for valuing a business c) State three (3) factors to consider when making a decision on functional currency

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 3MC: The system of using a monetary unit, such as the US dollar, to value the transaction is known as...

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Question

b) State five (5) reasons for valuing a business

c) State three (3) factors to consider when making a decision on functional currency

Expert Solution

Step 1

Requirement 1.b:

Following are the factors that may result in valuation of a business:

Buy or sell agreements
Mergers and acquisitions
Any form of shareholders or partnership disputes
When the owner wants to sell the business
Bank loans based on shares as security

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