What term refers to the worth of a business, including real estate, income, assets, goodwill, and earning capacity?

• A. Market value
• B. Going concern value
• C. Liquidation value
• D. Replacement value

Answer: (B)

Going-concern value is the worth of a business as an ongoing operation, capturing not just its physical assets but also its earning power and intangible assets like goodwill, client relationships, and brand strength. This is why it best fits the description that includes real estate, income, assets, goodwill, and earning capacity—the business is being valued for its ability to continue generating profits in the future.

Market value would be the price in an open sale and can be influenced by market conditions, not necessarily by the business’s ongoing earning potential. Liquidation value looks at what you’d receive if you sold assets separately after shutting the business down, ignoring continuing operations. Replacement value is the cost to recreate the business from scratch, not its current performance or intangible advantages.