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Private Businesses May Need to Be Valued to Settle Shareholder

question 63

True/False

Private businesses may need to be valued to settle shareholder disputes, court cases, divorce, or the payment of gift or estate taxes.


Definitions:

Accounting

The systematic process of recording, summarizing, and analyzing financial transactions of a business.

Small Stock Investments

Investments in a small quantity of stock, potentially in smaller or more speculative companies, as part of a diversified portfolio.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving predetermined interest payments.

Equity Securities

Financial instruments indicating ownership in a corporation, such as stocks, and often yielding dividends.

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