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Basic Question 1 of 5

When determining the definition of value, the most important two factors are:

I. The use of valuation.
II. The nature of operation.
III. The status of the company.
IV. The buyer/seller's requirements and expectations.

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain the income, market, and asset-based approaches to private company valuation and factors relevant to the selection of each approach;

explain cash flow estimation issues related to private companies and adjustments required to estimate normalized earnings;

CFA® 2025 Level II Curriculum, Volume 4, Module 25.