Which of the following situations will result in the investment value of a business approximating to the fair market value of the business?
A) when an investor's requirements and expectations are different than the fair value of the business
B) when an investor's requirements and expectations are representative of the book value of the business
C) when an investor's requirements and expectations are different than the market
D) when an investor's requirements and expectations are representative of the market

Question

Quizplus · Accepted Answer

The fair market value of a business is typically determined by market conditions, so when an investor's requirements and expectations are representative of the market (as opposed to being different than the market), the investment value of the business is more likely to approximate to the fair market value.

Which of the Following Situations Will Result in the Investment