"Determining the value of a business is a complicated and intricate process." Explain the general principles of Business Valuation and list down the aspects involved in preliminary study to valuation.

General Principles of Business Valuation are as under: Value is determined at a specific point in time. Value is prospective. It is equivalent to the present value, or economic worth, of all future benefits anticipated to accrue from ownership. The market determines the required rate of return. Value is influenced by liquidity. Principle of alternative The higher the underlying net tangible asset value base, higher the going concern value. Preliminary Steps in Valuation: A business/corporate valuation involves analytical and logical application/analysis of historical/future tangible and intangible attributes of business. The preliminary study to valuation involves the following aspects: Purpose of Valuation Analysis of business history Profit trends Goodwill/Brand name in the market Identifying economic factors directly affecting business Study of exchange risk involved Study of employee morale Study of market capitalization aspects Identification of hidden liabilities through analysis of material contracts.