Determining the value of a business based on its book value is used in the replacement-value approach.

Name: Determining the value of a business based on its book value is used in the replacement-value approach.
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Quizplus · Accepted Answer

The replacement-value approach estimates the cost of recreating the business from scratch, focusing on the current costs of its assets and liabilities, rather than using the book value which reflects historical costs.

Determining the Value of a Business Based on Its Book