Econ(again)

When state-owned enterprises are sold, how should their values be established? Should the value be based on the cost of the assets in place, the past earning power of the enterprise, or the future earning potential in a competitive economy?


The value should be established by competitive bidding. Accountants of the various bidders will consider future earnings potential and the value of assets in place. Past earning power is not as important, unless it is a stable "cash cow" business.

All three are important. The value should be established by competitive bidding, but the enterprise being aold also needs a clear idea of what is worth before accepting an offer. (Most will ask for more). Accountants of the various bidders will consider future earnings potential and the value of assets in place above all. Past earning power is not as important, unless it is a stable "cash cow" business.

  1. 👍 0
  2. 👎 0
  3. 👁 119
asked by Joey
  1. competitive

    1. 👍 0
    2. 👎 0
    posted by alfan

Respond to this Question

First Name

Your Response

Similar Questions

  1. Economics

    1)When state-owned enterprises are sold, how should their calue be established? Should the value be based on the cost of the assets in place, the past earning power of the enterprise, or the future earning potential in a

    asked by Joey on January 20, 2007
  2. Economics

    When state owned enterprises are sold, how should thier value be established? should it be based on The cost of the assets in place? The past earning power of the enterprise? The future earning power of the enterprises? Explain

    asked by Godfred on March 20, 2009
  3. MANAGERIAL ECONOMICS

    WHEN STATE OWNED ENTERPRISES ARE SOLD, HOW SHOULD THEIR VALUE BE ESTABLISHED

    asked by BONIFACE on April 28, 2017
  4. Plzzz help

    Which of the following sentences uses the past perfect verb tense? By June, I will have owned the camera shop for a decade. After it was sold, I had owned the camera shop for 12 years. I cannot recall a time when I have not owned

    asked by cupcake2 on October 13, 2017
  5. Language Arts

    1. Which of the following sentence uses the past tense verb? A. By June, I will have owned the camera shop for a decade. B. After it was sold, I had owned the camera shop for 12 years. C. I cannot recall a time when I have not

    asked by Caylee on October 26, 2015
  6. Language Arts

    Which of the following sentences uses the past perfect verb tense? A. By June, I will have owned the camera shop for a decade. B. After it was sold, I had owned the camera shop for 12 years. C. I cannot recall a time when I have

    asked by Damon Salvatore on October 3, 2019
  7. Language arts

    1. Which of the following sentences uses the past perfect verb tense. A) By June, I will have owned the camera shop for a decade. B) After it was sold, I had owned the camera shop for 12 year as C) I cannot recall a time when I

    asked by Tim on November 3, 2015
  8. Language Arts

    1. Which of the following sentences uses the past perfect verb tense. A) By June, I will have owned the camera shop for a decade. B) After it was sold, I had owned the camera shop for 12 year as C) I cannot recall a time when I

    asked by Nicole on October 24, 2016
  9. government

    the merging of small private farms into large government-owned enterprises is called a. collectivization b. privatization c. industrialization c

    asked by jere on January 18, 2008
  10. economics

    Which goods would be included in the calculation of GDP? A. toys made in China at a factory owned by a U.S. company B. cars made in Tennessee at a factory owned by a Japanese car company C. plastic made in Kentucky and sold to a

    asked by Becca on February 18, 2016

More Similar Questions