Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 48 views

    Article Review of Business Valuation and Economic Loss Analysis

    Uploaded by

    Tarunvir Kukreja
    This article discusses business valuation and economic loss analysis. It focuses on how a company's valuation is derived from the subjective value that economic agents assign to it, and how this relates to the company's decision-making capabilities. The article also examines the differences between market value and a more functional theory of valuation, and discusses valuing a business as a whole or in separate parts. Functional business valuation integrates both subjective and objective valuation concepts, and recognizes that the purpose of any valuation should depend on why it is being conducted.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Article Review of Business Valuation and Economic Loss Analysis

    Uploaded by

    Tarunvir Kukreja
    48 views3 pages
    This article discusses business valuation and economic loss analysis. It focuses on how a company's valuation is derived from the subjective value that economic agents assign to it, and how this relates to the company's decision-making capabilities. The article also examines the differences between market value and a more functional theory of valuation, and discusses valuing a business as a whole or in separate parts. Functional business valuation integrates both subjective and objective valuation concepts, and recognizes that the purpose of any valuation should depend on why it is being conducted.

    Original Title

    article review

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This article discusses business valuation and economic loss analysis. It focuses on how a company's valuation is derived from the subjective value that economic agents assign to it, and how this relates to the company's decision-making capabilities. The article also examines the differences between market value and a more functional theory of valuation, and discusses valuing a business as a whole or in separate parts. Functional business valuation integrates both subjective and objective valuation concepts, and recognizes that the purpose of any valuation should depend on why it is being conducted.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    48 views3 pages

    Article Review of Business Valuation and Economic Loss Analysis

    Uploaded by

    Tarunvir Kukreja
    This article discusses business valuation and economic loss analysis. It focuses on how a company's valuation is derived from the subjective value that economic agents assign to it, and how this relates to the company's decision-making capabilities. The article also examines the differences between market value and a more functional theory of valuation, and discusses valuing a business as a whole or in separate parts. Functional business valuation integrates both subjective and objective valuation concepts, and recognizes that the purpose of any valuation should depend on why it is being conducted.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Article Review of Business Valuation and

    Economic Loss Analysis

    After looking at the valuation theories of different companies, we can see that this article

    presents the main importance of a company like decision making, argument, arbitration or the

    negotiation function. The main part of this article focuses on the decision making function of

    the company and it depicts how decision making capability of the company can be derived as

    a limit of subjective value that the different agents of the economy assign to the company.

    Also in the article, the differences between market value and the functional oriented theory of

    the company valuation are discussed. They tried to discuss the valuation of a business as a

    whole entity or bigger self-contained parts through which the economic results can be

    assigned. They did not discuss the valuation of single non-influential and of the goodwill in

    connection with accounting. These results can be affected by company owners or managers

    and are thus dependent on person- and plan. The useful business valuation idea can be

    applied to the buy and offer of a business just as to merger and split circumstances . The

    object of valuating, in this article is depicted towards company which is a valuation object of

    this article.

    The functional concept integrates the subjective and the major concept of emphasizing the

    valuation purpse. The major issue of functional business valuation is the purpose of a

    business valuation: Each calculation has a particular purpose and must be designed in

    situation with this valuation purpose. The question of the appropriate method to determine the

    value can only be answered in conformity with the given objective. A rational decision

    subject will only consent to an agreement in a non- dominated conflict situation if the degree

    of target achievement after the agreement is not . To be able to compare different conflict

    solutions, the decision subject must develop concepts that illustrate how different forms of
    the conflict-resolution-relevant issues change the utility level after an agreement. The

    decision value will be calculated in a number of two steps, taking in view of the underlying

    conflicts situation.

    The very first step contains the determining of the level of utility that is achieveable for the

    conflicting party without the agreement. This step is known as determination of the base

    program.

    The 2nd step contains the establishing of the conflict resolution issues that a conflicting party

    ignores, judges indifferently because a lower, higher or equal utility is achievable from the

    conflicting party‘s perspective in case of an agreement. Functional business valuation also

    accounts that the typical enterprise is not traded publicly, so that any valuation based on the

    assumption of perfect capital markets and perfect competition is out of place. In utilitarian

    business valuation, it is found in a multi-dimensional choice worth inverse to only a one-

    dimensional choice worth, indicating the way that a perplexing understanding contains a lot

    more information than just a price. Thus, all measures to redesign the base program into the

    valuation program are the comparison object to the company to be evaluated because they

    constitute the alternative to the acquisition of the company at the decision value.

    Submitted by- Tarunvir Singh Kukreja

    R.no.-1820335

    You might also like