Understanding financial ratios is important to the valuation process for which of the following reasons?

• A.Financial ratios describe relationships between different elements of financial performance and therefore provide the basis for forecasting.
• B.Financial ratios can be used to create forecasting parameters.
• C.Financial ratios can be used to understand the prior performance of a company and influence the value of forecasting parameters.
• D.All of the above.

Which of the following best describes the basic foundation of an entrepreneurial business model?

• A.The economic dynamics and opportunity
• B.The company strategy
• C.The company organization
• D.The return to be earned on the investment

Which of the following represent opportunities on which to build an entrepreneurial business strategy?

• A.The presence of an unmet social need
• B.Introduction of a new consumer product that currently does not exist
• C.Application of a process technology
• D.All of the above