QUESTION: 5

Valuation of must be specified. For example, the assignment might include language such as" ...engaged to estimate the fair market value of the fixed assets, inventory, and goodwill, on a going-concern basis of..."

Assets
Securities
Cooperatives
Partnerships

Answer(s): A

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QUESTION: 6

Which one of the following is NOT always clearly defined? Therefore, if the term is used, it should be supplemented by a definition of exactly what it means in the given valuation context.

Enterprise value
Partial interest
Invested capital
Securities

Answer(s): C

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QUESTION: 7

Unfortunately, the term enterprise value is used, at best, very ambiguously and, at worst, very carelessly. It means different things to different people, each of whom many believe that his or her definition is the right definition. It is generally used to represent some sort of of the company and is often used as a synonyms for _.

Average value, Market value
Aggregate value, Market value of invested capital (MVIC)
Partial interest, Aggregate value
Specific ownership interest subject to appraisal, Equity or invested capital

Answer(s): B

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QUESTION: 8

The primary ownership interest characteristics that need to be addressed in almost every business valuation are the following EXCEPT:

Control or minority valuation basis (not necessarily a black-andwhite issue _there may be elements of control without absolute control
Degree of marketability
Fair market value
Fair market value on a nonmarketable, non-controlling ownership interest basis.

Answer(s): C,D

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QUESTION: 5

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QUESTION: 8

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