Question #44
Reading: Reading 24 Private Company Valuation
PDF File: Reading 24 Private Company Valuation.pdf
Page: 22
Status: Correct
Correct Answer: B
Question
Which of the following is least likely an example of a transaction-related valuation for a private company?
Answer Choices:
A. Bankruptcy proceeding
B. Performance-based managerial compensation
C. Financial reporting
Explanation
Venture capital financing, initial public offering (IPO), bankruptcy proceeding,
performance-based managerial compensation, and sale in an acquisition are all examples
of transaction-related valuations for a private company.