Which of the following will most directly determine the market price of a business or physical asset?

A) cost of the asset
B) expected future net earnings derived from the asset
C) book value (original purchase price minus depreciation) of the asset
D) age of the asset

Market Price

This term refers to the actual selling price of goods or services in the marketplace at any given time.

Future Net Earnings

The projected amount of money that a company is expected to earn in the future after all expenses and taxes have been deducted.

Business Asset

Resources owned by a company that have economic value and can contribute to future profits.