alleryStart learning →Why is the asset-based approach weak for a going concern?
AGoodwill is hard to value on its own
BTangible assets cannot be valued
CLiabilities are always ignored
DIt needs a quoted share price
Answer & Solution
Correct answer: A. Goodwill is hard to value on its own
Goodwill and other intangibles generally cannot be valued separately from the overall enterprise value, so asset-based values fall short.
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