Which of the following is situation commonly drives a business valuation engagement?
A) hypothecation of assets
B) shareholder dispute
C) hedging a company's derivatives
D) determination of dividend payout

Question

Quizplus · Accepted Answer

A shareholder dispute often requires a business valuation to determine the fair value of the company's shares. This can help resolve the dispute by providing a fair price for the shares involved. Hypothecation of assets, hedging derivatives, and determination of dividend payout are not common situations that require a business valuation engagement.

Which of the Following Is Situation Commonly Drives a Business