Important Issues That One Must Consider in Valuing Private Companies

question 9

Multiple Choice

Important issues that one must consider in valuing private companies include

• A) whether key people remain in the company, the amount of dividends that one may receive in the coming years, and whether a controlling ownership interest or a minority interest is being valued.
• B) the difficulty in valuing young, rapidly growing companies in contrast to mature, stable companies, the amount of dividends that one may receive in the coming years, and whether a controlling ownership interest or a minority interest is being valued.
• C) the difficulty in valuing young, rapidly growing companies in contrast to mature, stable companies, whether key people remain in the company, and whether a controlling ownership interest or a minority interest is being valued.
• D) None of the above.

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Definitions:

Good Samaritan Law

Legal protection for individuals who provide emergency care to injured persons without expectation of reward.

Trachea

The windpipe, a tube that connects the larynx to the bronchi of the lungs, allowing for air passage.

Vocal Cords

Tissue bands in the larynx that vibrate to produce sounds for speech and communication.

Cardiopulmonary Resuscitation (CPR)

An emergency procedure that combines chest compressions with artificial ventilation to manually preserve brain function until further measures to restore spontaneous blood circulation and breathing in a person who is in cardiac arrest.