Explanation:
Asset-based valuation models are most effective for companies with a high proportion of current assets and current liabilities, as these assets have readily determinable market values. Conversely, illiquid assets (Option A) and intangible assets (Option C) pose challenges due to their lack of marketability or difficulty in valuation, making them less suitable for this approach.
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Asset-based valuation models are most suitable for companies with a significant proportion of:
A
Illiquid assets, which lack easily determinable market values and complicate asset valuation methods.
B
Current assets, as these valuations are effective for firms with substantial current assets and liabilities.
C
Intangible assets, which are challenging to value and often excluded from asset-based models.
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