Question 1

When considering employees, the entrepreneur should be concerned about

Accepted Answer

A)  total number of single employees. 
B)  total number of female employees. 
C)  total number of employees by function. 
D)  employee productivity. 
A)  total number of single employees. 
B)  total number of female employees. 
C)  total number of employees by function. 
D)  employee productivity.

Question 2

What is a rollup?

Accepted Answer

A)  the acquisition and merging of small companies in the same market 
B)  of a dissolution of a partnership 
C)  a product-line acquisition 
D)  the amount of risk involved in an acquisition 
A)  the acquisition and merging of small companies in the same market 
B)  of a dissolution of a partnership 
C)  a product-line acquisition 
D)  the amount of risk involved in an acquisition

Question 3

Brazil's human, mineral, and agricultural resources are on par with those of the United States.

Accepted Answer

A) True 
 B)False

Question 4

Return on investment

Accepted Answer

A)  is net profit divided by investment. 
B)  provides a replacement value. 
C)  establishes a value for the business. 
D)  is equal to the current prime rate. 
A)  is net profit divided by investment. 
B)  provides a replacement value. 
C)  establishes a value for the business. 
D)  is equal to the current prime rate.

Question 5

Business valuation is essential when attempting to buy out a partner.

Accepted Answer

A) True 
 B)False

Question 6

List and briefly explain the three methods utilized for business evaluation.

Accepted Answer

The first method is the adjusted tangibl

Question 7

What should be considered in analyzing a business and what are some weaknesses of small business?

Accepted Answer

When analyzing a small closely held corp

Question 8

Buyers and sellers assign different values to a business.

Accepted Answer

A) True 
 B)False

Question 9

One reason to keep projections in perspective is

Accepted Answer

A)  long histories. 
B)  fluctuating markets. 
C)  certain environments. 
D)  both a and b 
A)  long histories. 
B)  fluctuating markets. 
C)  certain environments. 
D)  both a and b

Question 10

__________ refers to conducting a thorough analysis of every facet of an existing business.

Accepted Answer

A)  Due diligence 
B)  Industry capitalization 
C)  Knowledge acquisition 
D)  Risk assessment 
A)  Due diligence 
B)  Industry capitalization 
C)  Knowledge acquisition 
D)  Risk assessment

Question 11

The primary advantage of the price/earnings approach to valuation is that

Accepted Answer

A)  it reflects "top value" of the firm. 
B)  it pays off assets and sells liabilities. 
C)  it assumes business begins operations. 
D)  it is simple to use. 
A)  it reflects "top value" of the firm. 
B)  it pays off assets and sells liabilities. 
C)  it assumes business begins operations. 
D)  it is simple to use.

Question 12

The price/earnings ratio (multiple of earnings) method is determined by dividing the market price of common stock by retained earnings.

Accepted Answer

A) True 
 B)False

Question 13

What hidden costs are involved when establishing the value of a firm?

Accepted Answer

A)  insufficient controls and costs 
B)  divergent expenses 
C)  personal expenses 
D)  travel expenses 
A)  insufficient controls and costs 
B)  divergent expenses 
C)  personal expenses 
D)  travel expenses

Question 14

Which of the following are considered methods for valuation of a venture?

Accepted Answer

A)  return on investment 
B)  stock market method 
C)  multiple of earnings 
D)  a and c are correct 
A)  return on investment 
B)  stock market method 
C)  multiple of earnings 
D)  a and c are correct

Question 15

Replacement value of a business is based upon the value of each asset if it had to be replaced at a certain cost.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following methods of valuation was developed by the U.S. Treasury to determine a firm's intangible assets?

Accepted Answer

A)  market value 
B)  replacement value 
C)  excess earnings 
D)  multiple of earnings 
A)  market value 
B)  replacement value 
C)  excess earnings 
D)  multiple of earnings

Question 17

Insufficient controls signify strength when analyzing the business being valued.

Accepted Answer

A) True 
 B)False

Question 18

Book value of a firm is also known as

Accepted Answer

A)  balance sheet method. 
B)  income statement method. 
C)  capitalized earnings approach. 
D)  fixed price method. 
A)  balance sheet method. 
B)  income statement method. 
C)  capitalized earnings approach. 
D)  fixed price method.

Question 19

Adjusted tangible book value is a popular method of valuation.

Accepted Answer

A) True 
 B)False

Question 20

What does a post-money valuation include that a pre-money valuation does not?

Accepted Answer

A)  market value 
B)  replacement value 
C)  excess earnings 
D)  venture capital investment 
A)  market value 
B)  replacement value 
C)  excess earnings 
D)  venture capital investment

When considering employees, the entrepreneur should be concerned about

What is a rollup?

Brazil's human, mineral, and agricultural resources are on par with those of the United States.

Return on investment

Business valuation is essential when attempting to buy out a partner.

List and briefly explain the three methods utilized for business evaluation.

What should be considered in analyzing a business and what are some weaknesses of small business?

Buyers and sellers assign different values to a business.

One reason to keep projections in perspective is

__________ refers to conducting a thorough analysis of every facet of an existing business.

The primary advantage of the price/earnings approach to valuation is that

The price/earnings ratio (multiple of earnings) method is determined by dividing the market price of common stock by retained earnings.

What hidden costs are involved when establishing the value of a firm?

Which of the following are considered methods for valuation of a venture?

Replacement value of a business is based upon the value of each asset if it had to be replaced at a certain cost.

Which of the following methods of valuation was developed by the U.S. Treasury to determine a firm's intangible assets?

Insufficient controls signify strength when analyzing the business being valued.

Book value of a firm is also known as

Adjusted tangible book value is a popular method of valuation.

What does a post-money valuation include that a pre-money valuation does not?

Entrepreneurship: Evolutionary Development-Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: The Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Sources of Capital for Entrepreneurs

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges for Entrepreneurial Ventures

Financial Preparation for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Harvesting the Entrepreneurial Venture

Filters

Exam 14: Valuation of Entrepreneurial Ventures

When considering employees, the entrepreneur should be concerned about

What is a rollup?

Brazil's human, mineral, and agricultural resources are on par with those of the United States.

Return on investment

Business valuation is essential when attempting to buy out a partner.

List and briefly explain the three methods utilized for business evaluation.

What should be considered in analyzing a business and what are some weaknesses of small business?

Buyers and sellers assign different values to a business.

One reason to keep projections in perspective is

__________ refers to conducting a thorough analysis of every facet of an existing business.

The primary advantage of the price/earnings approach to valuation is that

The price/earnings ratio (multiple of earnings) method is determined by dividing the market price of common stock by retained earnings.

What hidden costs are involved when establishing the value of a firm?

Which of the following are considered methods for valuation of a venture?

Replacement value of a business is based upon the value of each asset if it had to be replaced at a certain cost.

Which of the following methods of valuation was developed by the U.S. Treasury to determine a firm's intangible assets?

Insufficient controls signify strength when analyzing the business being valued.

Book value of a firm is also known as

Adjusted tangible book value is a popular method of valuation.

What does a post-money valuation include that a pre-money valuation does not?

Entrepreneurship: Evolutionary Development-Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: The Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Sources of Capital for Entrepreneurs

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges for Entrepreneurial Ventures

Financial Preparation for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Harvesting the Entrepreneurial Venture

Filters