Because a Business Should Have as Its Primary Objective the Earning

question 14

True/False

Because a business should have as its primary objective the earning of a minimum rate of return on assets,the return on assets pricing method has a great deal of appeal and support.

---

Definitions:

Post-money Valuation

The value of a company after external financing and injections of equity have been added to its balance sheet.

Entrepreneur

An individual who creates, organizes, and operates a business or businesses, taking on greater than normal financial risks.

$1 Million

Refers to the sum of one million dollars, a significant financial milestone for individuals and businesses.

Exit Strategies

Planned methods of exiting one's current situation, often used in the context of business to refer to how an investor or entrepreneur plans to cash out of an investment.