For which one of the following would net asset value be the most inappropriate measure of share value?
A) A property investment company
B) An investment trust
C) A record company
D) An oil production company

Question

Quizplus · Accepted Answer

Net asset value (NAV) is a measure of the value of a company's assets minus its liabilities, divided by the number of shares. It is commonly used for investment companies, such as property investment companies and investment trusts. However, for a record company or any other company that relies heavily on intangible assets, such as patents or copyrights, NAV would not accurately reflect the company's true value.

For Which One of the Following Would Net Asset Value