Replacement Value (Valuation) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is Replacement Value (or Substantial Value) of Assets Method? A second, asset-based valuation method looks at the operating assets of a business and assigns a value based on what it would cost to replace them. This approach evaluates the cost of replacing the...

Book Value and Adjusted Book Value Methods – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is the Book Value (and Adjusted Book Value) Valuation Method?The book value represents the value that the company based upon the internal financial statements. Specifically, book value concerns the total value of company assets minus the total value of company...

Asset Based or Cost Based Valuation Methods – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is Asset-Based Valuation?  The asset-based approach focuses on the valuation of the firms assets or, in some instances, the cost of replacing those assets. This approach puts emphasis on the total assets and liabilities of the firm. It therefor reflects a...

Business Valuation Methods – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What are the primary business valuation methods?Valuation methods are particularly important in startup ventures, as valuation affects the interest of potential investors and reflects the expectations of the firms future performance. Equity investors in startup...

Elements of Operational Plan

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What are the Elements of an Operational Plan?The Elements of an Operation Plan include: Mission Value Proposition Goals and Objectives Value Chain  Research Evidence Timeline and Milestones Budget

Ethics and Morality – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Ethics & Social Responsibility

What is the role or effect of morality on ethics? Morality – is the collection of values that guides our behavior.It involves an understanding (of a societies view) of what is right and wrong and for justifying moral decisions. Businesses promote shared moral...

Ethics and Society – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Ethics & Social Responsibility

What is the role or effect of society on ethics? Cultural pluralism and diversity hinder the development of a common system of personal ethics. Sociological factors lead to ethical concerns for society. Economic interdependence is a driving concern over business...

Ethics & Law – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Ethics & Social Responsibility

What is the role of ethics in law? Both ethics and law deal with right and wrong and foster social cooperation.Societys ethical values become law through legislation and we often associate complying with the law as ethically correct. That the state enforces law but...

Formalism and Consequentialism in Ethics – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Ethics & Social Responsibility

What are two dominant theoretical approaches to ethics?Formalism and Consequentialism are theories in the study of ethics. They are not mutually exclusive and people adopt elements of both systems in making ethical choices.What is Formalism?A particular act is, in...

Legal Regulation in Ethics

by TheBusinessProfessor | Feb 23, 2025 | Business Ethics & Social Responsibility

What is the role or effect of legal regulation on ethics?Ethical values frequently become law and that legal regulation reflects ethical values.Ex. Civil Rights Act of 1964Legal regulation is a significant source of values for business. At least five major ethical...