Q. 1 What is it about the market approach that makes it the best way to value a business? Select an answer: the ability

[answerhappygod]

Q. 1 What is it about the market approach that makes it the best
way to value a business?
Select an answer:
the ability to use market multiples in the business
valuation
the accounting rules that apply to valuing businesses with the
market approach
the ease of using the market approach for nonpublic
companies
the fact that market information is available for all
businesses
Q.2
Your investment advisor suggests a Swedish company that makes
flip-open cell phones. The company has a record of amazingly high
profits. Based on price-to-sales, should you make the
investment?
Select an answer:
You should invest if the profitability of each sale is greater
than similar companies.
You should only invest if you evaluate the growth potential for
flip-open cell phones.
You should invest because price-to-sales is based on historic
profits of a company.
You should only invest if you calculate the price-to-sales for
the company's recent history.
Q.3
When you use the discounted cash flow valuation, how far in the
future should you extend your free cash flow forecast?
Select an answer:
for as long as you anticipate your business being in
operation
at least four+ years after your company runs out of innovative
ideas
for as many years in the future as you have reliable data
at least past your company's terminal year, to capture any new
business ideas