A rule of thumb: is the same for every industry never changes for any industry may change for some industries year to year, but stays the same for other industries year to year O is a waste of time Question 18 (1 point) Listen 6 The profession of valuations of closely held businesses: .9 is an art and a science is an objective process (similar to algebra) leads to one answer if done correctly, by every qualified valuation analyst is never done in the real world because until something is actually sold, we have no idea as to its value One of the adjustments that is very often considered is a reasonable compensation adjustment. Which of the following statements is NOT correct? A reasonable compensation adjustment should be made on EVERY valuation assignment A minority shareholder will not be able to make a reasonable compensation adjustment Reasonable compensation adjustments are made because a majority shareholder pays him or herself too much or too little A business owner's reasonable compensation is a subjective analysis Question 20 (1 point) Listen All of the following are potential adjustments made in preparing an income approach EXCEPT FOR: add back non-recurring items reasonable compensation adjustment add back personal expenses that the owner paid for with company funds a reasonable compensation adjustment made by a minority shareholder