Which of the following is NOT a standard of value when it comes to business valuation?

Hypothetical value is often considered a concept rather than a standard of value in business valuation. The standards of value serve specific purposes within the context of valuation, and their definitions are well-established in the field.

Investment value refers to the worth of a business to a particular investor based on their personal investment criteria and expectations. Fair market value is a widely accepted standard that reflects the price at which property would change hands between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts. Fair value is often used in legal contexts, particularly around shareholder disputes or in the context of mergers and acquisitions, and represents a value that is reasonable under the circumstances, often requiring judicial consideration.

By contrast, hypothetical value lacks this specificity and is not applied in typical valuation scenarios. It may involve theoretical constructs that don't reflect market realities or conditions accepted in business valuation, placing it outside the recognized standards. This lack of application in formal valuation makes hypothetical value not a standard of value in the context being discussed.