A likely shortcoming in valuing a target based on deducting total liabilities from total assets is:
A)that balance sheet figures do not represent market values.
B)intangible assets may not be included in the balance sheet.
C)there may be complementarity between assets.
D)all of the given options.

Question

Quizplus · Accepted Answer

All of the given options are likely shortcomings of valuing a target based only on deducting total liabilities from total assets. Balance sheet figures may not represent market values accurately, intangible assets may not be reflected accurately on the balance sheet, and there may be complementarity between assets that is not taken into account by looking at total liabilities and assets alone.

A Likely Shortcoming in Valuing a Target Based on Deducting