1. Maximising revenue should be the goal of the company.

   True

   False

2. QUESTION 2Which one of the following statements about business valuation is NOT true?

3. 		Actions by competitors also affect the value of a business.
   		The value of a business changes over time.
   		There is no such thing as the market value for a business.
   		There is a single value for any business.

4. QUESTION 3In finance, the fundamental determinant of an asset's value is the future cash flow it is expected to generate.

5. True

   False

6. 1 points

   QUESTION 4It is easier to calculate the market value of a private firm, compared to a public firm.

7. True

   False

8. QUESTION 5Young, rapidly growing companies can be more difficult to value compared to mature, stable companies. Why?

9. 		Young companies might only have 2 or 3 years of historical records compared to a mature company with years of records.
   		Many young, rapidly growing companies are not yet profitable and their future is less certain than for mature companies.
   		Due to the amount of money already invested in a young company, cash flows will be negative for the first few years. This makes valuation more difficult.
   		All of the above

10. QUESTION 6An important issue that must be considered when valuing a business is whether a controlling ownership interest or a minority interest is being valued.

11. True

    False

12. QUESTION 7 There is no such thing as ONE value for a business, because...

13. 		the value of a business can be different to different investors.
    		valuing a business is really hard, and no one knows how to do it.
    		accountants and financial managers like to argue.
    		the share market goes up and down all the time.

14. QUESTION 8The value of a business changes over time because...

15. 		changes in general economic conditions, industry conditions, and decisions made by managers all affect value.
    		actions by competitors also affect value.
    		the investment, operating and financing decisions made by managers also affect value.
    		All of the above.

16. QUESTION 9What are the three categories of business valuation?

17. 		Cash flow, growth and capital approach
    		Cost, market and income approach
    		Profit, loss and Excel approach
    		Assets, liabilities and capital approachQUESTION 10'Market Capitalisation' of a company listed on the stock market refers to:

18. 		The market value of the company.
    		The fundamental value of the company.
    		The book value of the company.
    		Nothing, this is not a term we use in finance.