1. If an earnings multiplier is not available for a given firm, the multiplier used in an earnings-based method of valuation of a firm is often estimated from comparable:

A) Taxable entities.

B) Industries.

C) Firms.

D) For-profit firms.

E) Publicly-held firms.

2. Which of the following is not one of the four methods used in cost life cycle pricing?

A) Life-cycle cost plus markup.

B) Full cost plus desired return on assets.

C) Full manufacturing cost plus markup.

D) Production and design costs plus desired return on assets.

E) Full cost and desired gross margin percent

3. During the sales life cycle, which is an example of what happens during the growth phase?

A) Sales and price decline, as do the number of competitors.

B) Sales continue to increase but at a decreasing rate. The number of competitors and product variety decline.

C) Sales increase rapidly along with an increase in product variety.

D) Sales rise slowly as customers become aware of the new product or service. Product variety is limited.

E) Sales increase but product variety falls.

4. A bonus plan differs from a salary in terms of:

Amount and timing.

Base, timing, and financial statement effect.

Tax implications.

Motivation effects.

Base, pool, and payment terms.