Business Valuation – Easy MCQs Quiz

What does business valuation mean?

• Buying products at discount

• Finding out how much a business is worth

• Hiring new employees

• Changing the business name

Which method values a business by comparing it to similar companies?

• Income Approach

• Market Approach

• Asset-Based Approach

• Cost Valuation

Which of the following is a reason to value a business?

• To throw a party

• To decorate the office

• For selling or buying the business

• To hire interns

What does the 'Asset-Based Valuation' method focus on?

• Market price of competitors

• Future income

• Company's assets and liabilities

• Number of employees

What is goodwill in business valuation?

• Office rent

• A type of machinery

• Intangible value like brand and reputation

• A tax term

The Income Approach values a business based on:

• Number of products

• Future earnings or profits

• Employee skills

• Marketing budget

Which of the following is an intangible asset?

• Building

• Vehicle

• Brand name

• Inventory

Why is business valuation important to investors?

• To check company logo

• To decide fair value before investing

• To reduce tax

• To choose a company name

A higher risk business usually has a:

• Higher valuation

• Lower discount rate

• Lower valuation

• More employees

The value of a company’s shares can be calculated using:

• The price of food

• Number of meetings

• Earnings per share (EPS)

• Furniture costs