Question #39

Reading: Reading 24 Private Company Valuation

PDF File: Reading 24 Private Company Valuation.pdf

Page: 20

Status: Incorrect

Correct Answer: B

Your Answer: A

Part of Context Group: Q39-41 First in Group
Shared Context
- Which of the following mentioned in Comment 1 is least likely to be a company specific characteristic of a private company? A) Tax consideration. B) Quality and depth of management. C) Shareholders agreements that restrict liquidity.
Question
Comment 2 is describing:
Answer Choices:
A. fair value
B. investment value
C. fair market value
Explanation
Investment value is the value of a private company that depends on the investor's expectations and investment requirements. Investment value could differ from one buyer to the next due to different perception of risk and future potential.
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