Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:
__________is one of the most widely used measures for evaluating a business for acquisition etc.
Options:
EBITDA
ROI
ROE
PAT
Correct Answer:
EBITDA
Explanation:
When one wants to assess the efficiency of operations – either for acquisition or comparison with benchmarked operations or over different time periods, ability to generate cash by business is crucial. EBITDA is one such measurement. It is one of the most widely used measures for evaluating a business for acquisition etc.