A company's value,based on the assumption that its divisions being sold individually,is called ___________ value.
A) book
B) market
C) breakup
D) real

Question

Quizplus · Accepted Answer

Breakup value is the value of a company based on the assumption that its individual divisions or assets are sold separately. It is a way of determining the minimum value of a company, as the actual value could be higher if the company remains intact and generates synergies between its different divisions. Book value refers to the value of assets minus liabilities on the company's balance sheet, while market value is the current price of a company's shares in the stock market. Real value is not a commonly used term in finance.

A Company's Value,based on the Assumption That Its Divisions Being