A Simple Method of Valuing a Private Company Is to Apply

question 71

True/False

A simple method of valuing a private company is to apply the price-earnings ratios of publicly traded firms in the same industry to the private company's earnings.

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Definitions:

End-Results Ethics

An ethical perspective that judges the morality of actions based on the outcomes or consequences they produce.

Pharmaceutical Company

An enterprise that specializes in the research, development, production, and marketing of drugs and medications.

Miracle Drug

A term often used to describe a pharmaceutical product that has an unexpectedly positive therapeutic effect.

Common-Value Issue

A negotiation matter where the involved parties agree on the inherent value of the subject, but may differ on other terms related to it.