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Business Valuation – Easy MCQs Quiz

Total questions: 13

Worksheet time: 2mins

Name
Class
Date
1.

What does business valuation mean?

a)

Buying products at discount

b)

Finding out how much a business is worth

c)

Hiring new employees

d)

Changing the business name

2.

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

a)

Income Approach

b)

Market Approach

c)

Asset-Based Approach

d)

Cost Valuation

3.

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

a)

To throw a party

b)

To decorate the office

c)

For selling or buying the business

d)

To hire interns

4.

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

a)

Market price of competitors

b)

Future income

c)

Company's assets and liabilities

d)

Number of employees

5.

What is goodwill in business valuation?

a)

Office rent

b)

A type of machinery

c)

Intangible value like brand and reputation

d)

A tax term

6.

The Income Approach values a business based on:

a)

Number of products

b)

Future earnings or profits

c)

Employee skills

d)

Marketing budget

7.

Which of the following is an intangible asset?

a)

Building

b)

Vehicle

c)

Brand name

d)

Inventory

8.

Why is business valuation important to investors?

a)

To check company logo

b)

To decide fair value before investing

c)

To reduce tax

d)

To choose a company name

9.

A higher risk business usually has a:

a)

Higher valuation

b)

Lower discount rate

c)

Lower valuation

d)

More employees

10.

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

a)

The price of food

b)

Number of meetings

c)

Earnings per share (EPS)

d)

Furniture costs

11.

Which of the following best describes a tangible asset?

a)

Trademark

b)

Patent

c)

Equipment

d)

Goodwill

12.

What is a common reason for conducting a business valuation?

a)

To determine loan eligibility

b)

To update office furniture

c)

To design a new logo

d)

To plan a company picnic

13.

Which valuation method is most likely to use a company's balance sheet?

a)

Income Approach

b)

Market Approach

c)

Asset-Based Approach

d)

Discounted Cash Flow