Which of the following is (are)included in the market value of a firm but are excluded from the firm's book value?
I.value of management skills
II.value of a copyright
III.value of the firm's reputation
IV.value of employee's experience
A)I only
B)II only
C)III and IV only
D)I, II, and III only
E)I, III, and IV only

Question

Quizplus · Accepted Answer

The market value of a firm includes factors that can't be quantified or recorded in financial statements, while the book value only accounts for the tangible assets and liabilities. Management skills, the value of copyrights, the firm's reputation, and employee's experience are all intangible assets, and they are a part of the market value but not the book value. Therefore, choices I, III, and IV are all correct, making E the best answer.

Which of the Following Is (Are)included in the Market Value