n NISM Certifications
XV NISM Series XV
Medium

When is the valuation of businesses or assets typically done?

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    When buying a business as an investment

  2. B

    When selling a business as part of disinvestment

  3. C

    For accounting, taxation, or regulatory purposes

  4. All of the above

    Correct answer

Why this is the answer

Business valuation is performed for multiple reasons, including acquisitions, disinvestments, accounting, taxation, legal compliance, and ensuring fairness for stakeholders. It provides a basis for decision-making in both investment and regulatory contexts.

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