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 longterm 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