Saturday, April 9, 2016

Week 13 - Reading Reflection

Each firm has the ability to put a dollar value on their business. After reading this chapter I was informed of quite a few methods. One idea that stood out to me were the amount of factors taken into account when evaluating a well-established business It was confusing to read about many different types of methods and none of them mentioning sunk costs. Would taking into account any failed investments lead to an alteration in the value of the business? If I was able to ask the author two questions I would ask, depending on the size of the business would identify other cost be included in the assessment? Also, does having one main corporation and having several businesses attached to that main brand ultimately incorporate partnership value as well? I have never had the opportunity to read about the valuation of a firm as a whole. According to my current finance classes and lessons, there are a few crucial factors taken into account when it comes to operational value. Nothing I read did I disagree about, this was very enlightening and easily relatable to other subjects I am current learning about.


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