Which of the following is not a subjective technique an entrepreneur can use to evaluate the asking price of an LBO
A) The competitive position of the firm within its industry
B) The uniqueness of the firm's offerings
C) Price-earnings ratio
D) The abilities of management and other key personnel

Question

Quizplus · Accepted Answer

Price-earnings ratio is an objective technique that evaluates the asking price of an LBO by comparing the firm's stock price to its earnings per share. The other options (A, B, and D) are subjective techniques as they involve more qualitative evaluations of the firm's position and performance.

Which of the Following Is Not a Subjective Technique an Entrepreneur