A key difference between the liquidation value of an asset and the exit price of the asset is that the exit price is assumed to occur in orderly markets, and the liquidation value is a price if there must be an immediate sale.

Question

Quizplus · Accepted Answer

The statement is true. The exit price assumes a sale in an orderly market, while the liquidation value assumes an immediate sale regardless of market conditions.

A Key Difference Between the Liquidation Value of an Asset