Author Question: An asset's book value represents the true market value of the asset. Indicate whether the ... (Read 69 times)

shenderson6

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An asset's book value represents the true market value of the asset.
  Indicate whether the statement is true or false

Question 2

Which of the following is true of the standards of value used in business valuation?
 
  A) The fair value proposes a hypothetical sale in an open and unrestricted market.
  B) The investment value is often used in dissenting minority interest litigation.
  C) The book value of a business rarely represents its fair market value.
  D) The fair market value is usually greater than the investment value.



wergv

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Answer to Question 1

F

Answer to Question 2

C
Explanation: C) The book value of a business rarely represents its fair market value. Nonetheless, many buy-sell agreements use net book value as the applicable measure of value.



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