Why is adherence to legal standards important in business appraisal?
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Wrong!
Legal compliance ensures appraisals are conducted ethically and in accordance with established regulations, maintaining credibility and accuracy.
Which organization establishes ethical guidelines for business appraisers?
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The Uniform Standards of Professional Appraisal Practice (USPAP) sets ethical and performance standards for appraisers in the U.S.
What is a key ethical responsibility of an appraiser?
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Appraisers must remain impartial and objective to provide accurate and fair valuations without bias or external influence.
Why must appraisers maintain confidentiality?
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Confidentiality protects sensitive business data and maintains trust between the appraiser and the client.
Which of the following is a legal consequence of unethical appraisal practices?
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Unethical appraisal practices can lead to legal penalties, revoked licenses, and reputational damage.
What is a conflict of interest in business appraisal?
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A conflict of interest occurs when an appraiser has a financial or personal relationship that could influence their objectivity.