Which of the following statements is true of the business valuation principle?

Question

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The fair market value of a business is the value of that business to a hypothetical person who is knowledgeable about the business. This is one of the key principles of business valuation. A, B, and D are all incorrect statements. The value of a business can change over time due to market conditions, changes in industry trends, or changes in management. The value of a business is affected by a variety of factors, including financing decisions, but it is not solely determined by them. When estimating fair market value, synergies or any investor-specific management style are typically excluded.

Which of the Following Statements Is True of the Business