Which of the Following Is True of the Standards of Value

question 35

Multiple Choice

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.

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Definitions:

Poisson Distribution

A distribution for predicting the probability of a given number of events occurring over a fixed interval of time or space.

Normal Distribution

A probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent values under a given set of parameters or assumptions.

Random Variable

A factor that acquires numerical values due to chance occurrences.