Developing an Accurate Valuation Helps

question 18

Multiple Choice

Developing an accurate valuation helps

• A)provide insight for the founders as to the amount of capital and labor that should be invested in the effort.
• B)convince outside equity investors of the potential long-term returns associated with the harvesting of the business.
• C)benchmark the growth of the firm by establishing a true starting point.
• D)all of these.

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Definitions:

Isostatic Rebound

The rise of land masses that were depressed by the weight of ice sheets during glaciation, occurring as the ice melts and the land slowly returns to its original elevation.

Metamorphic Rocks

Rocks that have been transformed by heat, pressure, or chemically active fluids, altering their original composition or structure.

Plutonic Rocks

Intrusive igneous rocks that crystallize deep underground from magma, such as granite and diorite.

Continental Crust

The relatively thick part of the Earth's crust that forms the large landmasses. It is generally older, less dense, and composed mainly of granite.