1. What are important characteristics to consider when choosing comparable firms for valuation using the multiples methods?

Industry and market segment

Ownership structure

Operating Characteristics

All of the above

None of the above

2. Market value of invested capital include

market equity value only

market equity and debt values

market equity and debt values less cash

market equity value less cash

debt value less cash

3. The challenges of using multiples valuation methods include

controlling for differences in financial leverage

discretionary expenses that are unique to the target firm or a comparable firm

finding appropriate comparable firms

All of the above

None of the above

4. In addition to financial date, other factors that may affect the transaction price include

experience of the entrepreneur

special personal circumstances

unique local market conditions

All of the above

None of the above

5. Valuation is important if

the owner(s) want to sell the entire business.

The owner(s) want to sell part of the business.

the owner(s) want to pass on the business to family members.

the business wants to obtain loans.

All of the above