Which of the following standards of value is often used in dissenting minority interest in litigation?
A) fair value
B) fair market value
C) book value
D) investment value

Question

Quizplus · Accepted Answer

Fair value is often used in dissenting minority interest in litigation because it considers the specific circumstances of the company and includes all assets and liabilities, instead of only looking at the market value of the company as a whole (like fair market value does). This is important in cases where a minority shareholder may have a different perspective on the value of the company than the majority shareholders. Book value and investment value may not accurately reflect the true value of the company in such cases.

Which of the Following Standards of Value Is Often Used