Book value of a business is not the same as its market value.

Question

Quizplus · Accepted Answer

Book value is the value of assets minus liabilities, as recorded in the company's financial statements. Market value, on the other hand, is the price at which the company can be bought or sold in the market. These values often differ because market value takes into account factors such as future earnings potential, brand recognition, and competition, while book value only reflects historical costs.

Book Value of a Business Is Not the Same as Its