1) Which one of the below is not true for firm growth? a. Growth is always profitable. b. Growth is a strategic decision. c. Growth may occur at the expense of margins. d. Companies at growth stage may be losing money.

2) Which one of the below is true for cash panic? a. Company value decreases during cash panic. b. Cost of capital decreases during cash panic. c. Cash flow cycle decreases during cash panic. d. Growth increases as a result of cash panic.

3) What are four measures used to indicate how efficient the venture is in generating profits on its sales? List all four, choose two and explain them in more detail.

4) LCS has the following information from their balance sheet: net sales, $500,000; salaries, $100,000; rent, $24,000; COGS, $250,000; utilities, $25,000; payroll taxes, $25,000; insurance, $12,000; and interest expense, $5,450. Value the company using three different multiplies methods. Why is there a difference between different valuation methods? Which one would you choose to present if you were looking for investment for LCS