The value of a firm measured as the sum of the values of its operating units if each were sold separately is known as a firm's breakup value.

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This statement is true. The breakup value is also called the sum of the parts value or liquidation value. It assumes that each operating unit could be sold separately and that this value is greater than the value of the entire firm as a single entity.

The Value of a Firm Measured as the Sum of the Values