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Business

Mary recently purchased a boutique. When she bought the boutique, its market value and book value were equal. Included in the purchase were the building, fixtures, and inventory. Which of the following might have caused the market value of this boutique to be less than its book value?

Multiple Choice

A sudden and unexpected increase in inflation

The replacement of old inventory items with more desirable products

A sudden and unexpected Increase in Inflation

The replacement of old Inventory items with more desirable products Improvements to the surrounding area by other store owners Construction of a new restricted access highway located between the boutique and the surrounding residential areas

Addition of a stop light at the main entrance to the boutique's parking lot

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