QUESTION 1

Which business valuation approach considers the present value of future economic benefits?

		Market approach
		Asset approach
		Income approach
		Idealistic approach

1 points

QUESTION 2

Using the equity stake equation, if a business owner neeeded to raise $250,000 in equity and the company is worth $1,000,000, how much (what percentage) of the company would the owners have to give up if the growth rate is 15% and they expect to completely sell out in 5 years? The formula for this is in the Rogers book.

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3 points

QUESTION 3

Which valuation method considers the valuation metrics of similar companies or recent transactions.

		Market approach
		Idealistic approach
		Asset approach
		Income approach

1 points

QUESTION 4

This will require a little work on your part.

The American Institute of Certified Public Accountants (AICPA) offers a certification for CPAs who also want to provide buisness valuation services. The certification is called Accredited in Business Valuation (ABV).

Find one person in the state of Alabama that holds this designation and give their name and the name of the company that they work for.

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2 points

QUESTION 5

From the videos, the advantage of the market approach is that comparable companies are easy to find.

True

False

1 points

QUESTION 6

Which business valuation method considers the value of the company's underlying assets

		Asset approach
		Market approach
		Idealistic approach
		Income approach

1 points

QUESTION 7

The only reason for a business valuation is when owners are preparing to sell the business.

True

False

1 points

QUESTION 8

Why is the stage of the company's development an important factor in the valuation? Only a full, quality answer will receive the full allotment of points.

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