What is one of the first obstacles to valuing a very small company:

1. Selecting comparable companies
2. Obtaining reliable data from the subject company
3. Determining if the company can pay for the valuation services they've requested
4. Assessing the company's competitiveness within their industry

Which of the following is not a common method for a small business to keep records of its finances:

1. QuickBooks
2. A Schedule C
3. A Balance Sheet
4. None of these

Relative to other types of shares, valuing non-marketable minority shares in very small companies is:

1. More subjective
2. More objective
3. Nearly identical
4. Less critical to the overall valuation

Of the three valuation approaches, which do the presenters recommend using the least:

1. The cost approach
2. The income approach
3. The market approach
4. The valuation approaches are not ranked by the presenters

In a situation in which there are no discretionary adjustments to the cash flows the appraiser should:

1. Take an additional lack of control on the minority interest
2. Assume that the economic benefits available to the non-minority interest are different than those for the minority interest
3. Make adjustments for qualitative differences in minority and non-minority cash flows
4. Make no adjustments for quantitative differences in minority and non-minority cash flows

Capitalization of excess earnings is:

1. No longer a preferred valuation technique because of academic and litigious scrutiny
2. Very useful in small business valuations
3. Not recommended for small business valuations
4. A method which has received relatively little scrutiny on its appropriateness or application

Which four factors are of interest to potential investors in any business?

1. Cash flow, growth, brand recognition, market saturation
2. Risk, life span, market size, brand recognition
3. Cash flow, life span, risk, growth
4. Market size, market saturation, life span, risk

In a small business valuation earning streams will frequently have to be "cleansed." Which of the following is not an example of something that appraisers may typically find in a small business earnings stream?

1. Perks
2. Personal expenses
3. Bonuses or other tax-driven compensation items
4. Unaccounted cash payments

Which valuation technique was cited by the presenters as not being appropriate for small business valuations:

1. Excess earnings
2. Capital Asset Pricing Model (CAPM)
3. Guideline public company analysis
4. Guideline private company transaction analysis

New research has revealed that the size effect:

1. Is more pronounced than previously estimated
2. May actually be inverted, making small companies less risky than larger companies
3. May be a mythical creation which plays no part in company performance whatsoever
4. Acts just as markets and investors had expected it to for all these years