Which statement is true about the relationship between valuation services and appraisal practice?

The correct statement reflects the broader context of valuation services and their connection to appraisal practice. Appraisal practice encompasses a wide range of activities and methodologies where valuation services are applied. Valuation services include various forms of analysis and reporting that may extend beyond traditional appraisals, covering areas such as market analysis, feasibility studies, and investment analysis, among others.

This relationship implies that appraisal practice forms a foundational component within the broader field of valuation services. Appraisal often involves providing an opinion of value for specific properties, but valuation services can involve additional aspects such as consulting on the value of businesses or personal property, hence embedding appraisal within a wider scope of valuation methodologies.

The other options suggest either a misleading independence between the two or an incorrect hierarchy. For example, claiming appraisal practice is unrelated to valuation services disregards their integral connection. Additionally, the assertion that valuation services are exclusive to commercial properties incorrectly limits the application of these services, as they pertain to residential and various other asset types as well.