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    Entrepreneurship A Process Perspective
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    Exam 13: Exit Strategies For Entrepreneurs: The Concluding Act
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    One Way to Value a Business Includes Comparing Its Price/earnings
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One Way to Value a Business Includes Comparing Its Price/earnings

Question 3

Question 3

Multiple Choice

One way to value a business includes comparing its price/earnings ratio to the price/earnings ratios of similar publicly traded companies in the same industry. This method is known as


A) price method.
B) market value method.
C) fixed assets method.
D) balance sheet method.
E) primary earnings method.

Correct Answer:

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