The question asks to identify which options are not primary characteristics of an ownership interest. Control (or lack thereof) and marketability are fundamental characteristics of the specific equity interest being valued. They define the rights and liquidity associated with the ownership stake.

In contrast, "Fair Market Value" (FMV) is a standard of value, which provides the definition of value to be used in the engagement. "Fair market value on a nonmarketable, non-controlling ownership interest basis" is a conclusion or a specific level of value, which is determined after considering the characteristics of lack of control and lack of marketability. Therefore, FMV and a specific level of value are not intrinsic characteristics of the ownership interest itself.

A. Control or minority valuation basis is a fundamental ownership characteristic that dictates the owner's ability to influence corporate policy and must be addressed.

B. The degree of marketability is a critical ownership characteristic that reflects the liquidity of the interest and its readiness to be converted into cash.

1. National Association of Certified Valuators and Analysts (NACVA). (2023). Business Valuations: Fundamentals, Techniques and Theory (FT&T).

In the chapter "Defining the Valuation Engagement," Fair Market Value is defined as a standard of value, distinct from the characteristics of the interest being valued.

In the chapter "Valuation Discounts and Premiums," the concepts of control and marketability are explicitly discussed as characteristics of the subject ownership interest that lead to adjustments from a base value, illustrated in the "Levels of Value" chart.

2. Hitchner, J. R. (2017). Financial Valuation: Applications and Models (4th ed.). Wiley.

Chapter 3, "Standards of Value, Premise of Value, and the Valuation Approach," defines Fair Market Value and distinguishes it from other valuation concepts.

Chapters 13 ("Control Premiums and Minority Interest Discounts") and 14 ("Discounts for Lack of Marketability") treat control and marketability as specific attributes of the ownership interest that require valuation adjustments.

3. Pratt, S. P., & Niculita, A. V. (2008). Valuing a Business: The Analysis and Appraisal of Closely Held Companies (5th ed.). McGraw-Hill.

Chapter 3, "Defining the Valuation Assignment," (pp. 41-54) details the importance of defining the standard of value (e.g., Fair Market Value) at the outset of an engagement.

Chapter 14, "Control Premiums and Minority Interest Discounts," and Chapter 15, "Discounts for Lack of Marketability," are dedicated to analyzing these specific ownership interest characteristics and quantifying their impact on value. This structure separates the standard of value from the characteristics of the interest.