Which of the following is not a qualitative technique an entrepreneur can use to evaluate the asking price of an LBO?

A) The abilities of management and other key personnel

B) The competitive position of the firm

C) The uniqueness of the firm's offerings

D) Price-earnings ratio

Question

Jazlene Garrett

Business

7 September, 00:25

Which of the following is not a qualitative technique an entrepreneur can use to evaluate the asking price of an LBO?

A) The abilities of management and other key personnel

B) The competitive position of the firm

C) The uniqueness of the firm's offerings

D) Price-earnings ratio

+5

Answers (1)

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Mya · Answer 1

Answer: Under the given options, the following is not a qualitative technique an entrepreneur can use to evaluate the asking price of an LBO: Price-earnings ratio.

In this case all of the given options are qualitative except "Price-earning ratio".

A "price-earning ratio" denotes the quantitative relation for measuring a company's current share price proportional to its per-share earnings.

Therefore the correct option is (d)

Which of the following is not a qualitative technique an entrepreneur can use to evaluate the asking price of an LBO?A) The abilities of management and other key personnelB) The competitive position of the firmC) The uniqueness of the firm's offeringsD) Price-earnings ratio

Which of the following is not a qualitative technique an entrepreneur can use to evaluate the asking price of an LBO?

A) The abilities of management and other key personnel

B) The competitive position of the firm

C) The uniqueness of the firm's offerings

D) Price-earnings ratio