Accepted business valuation approaches and methods are all of the following EXCEPT:
Answer(s): C
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.
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:
Answer(s): D
The capital stock of a corporation, its net assets and its share of stock are entirely different things… the value of one bears no fixed or necessary relation to the value of the other; because:
Answer(s): A,C
When is the guideline merged and acquired company method most useful?
Answer(s): A
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