Most small businesses have market values that exceed their book value.

Name: Most small businesses have market values that exceed their book value.
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Question

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Market value represents the perceived value of a business by investors, while book value represents the value of assets listed on a company's balance sheet. Most small businesses have intangible assets such as brand recognition, customer loyalty, and intellectual property that are not reflected in their book value, leading to a higher market value.

Most Small Businesses Have Market Values That Exceed Their Book