What is a disadvantage associated with the replacement value method of a business valuation? options: It does

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What is a disadvantage associated with the replacement value method of a business valuation?

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It does not realistically reflect the market value of the assets.

It does not account for intangible assets such as brand equity.

It does not always provide accurate costs for older assets.

It does not impose an upper limit on the value of the business.

It does not allow for a comparison between similar businesses.

Related Book For answer-question

Principles of Auditing and Other Assurance Services

ISBN: 978-0078025617

19th edition

Authors: Ray Whittington, Kurt Pany

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Posted Date: Jul 27, 2022 03:54 PM

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What is a disadvantage associated with the replacement value method of a business valuation? options: It does

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ANSWER It does not account for intangible assets such as brand equity Since brand equity is consider... View the full answer

Principles of Auditing and Other Assurance Services

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