Which of the Following Statements Is True of Business Valuation

question 37

Multiple Choice

Which of the following statements is true of business valuation principle?

• A) As per first valuation principle, the value of business does not change over time.
• B) The value of a business is solely affected by managers' financing decisions.
• C) The fair market value of a business is the value of that business to a hypothetical person who is knowledgeable about the business.
• D) Estimating the fair market value of a business includes the value of synergies or the effects of any investor-specific management style.

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Definitions:

Calyx

The cuplike division of the kidney pelvis.

Medulla

A central region of an organ, notably in the brain (medulla oblongata) affecting vital functions like breathing and heart rate, and in the kidney involved in regulating electrolyte balance.

Renal Papillae

The apex of the renal pyramid, which projects into the renal pelvis and where urine flows into the ureter.

Ptosis

A drooping or dropping of an organ or part; for example, the eyelid or the kidney.