A Contentious Issue with Heritage Assets Is Valuation

question 17

Multiple Choice

A contentious issue with heritage assets is valuation.This is a concern because:

• A) For some heritage assets no market really exists to determine fair value.
• B) As heritage assets are by their nature unique, it is difficult to compare them with similar assets.
• C) Those entities charged with responsibility for heritage assets usually don't have the discretion to dispose of them, so 'market value' has no relevance.
• D) Heritage assets generally create negative cash flows and so using discounted cash flows to establish value is impractical.
• E) All of the given answers.

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Definitions:

Molecular Formula

A notation that indicates the number and type of atoms in a molecule but not their structural arrangement.

Elements of Unsaturation

A measure used in organic chemistry to determine the number of π bonds and rings in a molecule.

Carbon-Carbon Single Bonds

Bonds formed by the sharing of a single pair of electrons between two carbon atoms.

Carbon-Carbon Double Bonds

A chemical bond between two carbon atoms involving four bonding electrons instead of the usual two, leading to the formation of alkenes.