QUESTION: 25

1. Dividends or partnership withdrawals (i.e. current economic income).
2. Proceeds from the ultimate sale of the ownership interest or liquidation of the subject business (i.e., including any long-term appreciation in the value of the security interest itself). These two are the categories of:

The economic benefits that the non-controlling ownership interest holder may realize.
The financial benefits that the non-controlling ownership interest holder may realize.
The economic benefits that the controlling ownership interest holder may realize.
The financial benefits that the controlling stakeholder may realize.

Answer(s): A

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QUESTION: 26

Accepted business valuation approaches and methods are all of the following EXCEPT:

Income approach
Asset-based approach
Guideling acquisition company approach
Market-based approach

Answer(s): C

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QUESTION: 27

There is a tendency for the market for the businesses to change more rapidly than the market for real estate. After all, a business can be thought of as a collection of _____________ each with its own price volatility and risks of ownership.

Realized and unrealized earnings
Short and long-term liabilities
Tangible and intangible assets
Unearned Revenues and fixed assets

Answer(s): C

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QUESTION: 28

The use of asset-based approach should not be confused with the selection of the appropriate premise of value for the subject business valuation. Some analysts mistakenly confuse the use of asset-based approach with a liquidation premise of value (or with a liquidation valuation). Rather, the asset-based approach can be used with all premises of value including:

Value in use as a going-concern
Value as orderly disposition
Value as in exchange as part of a forced orderly liquidation
A, B and C

Answer(s): D

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QUESTION: 25

QUESTION: 26

QUESTION: 27

QUESTION: 28

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