Your Profitable Business Is Worth Less Than You Think: Answer Key
When you hear the word, you have to do the word.
Answer Key (FAQs to Follow)
Multiple Choice Answers
Answer 1: B - It’s about certainty that future earnings will occur consistently without drama
“Why Your Profitable Business Is Worth Less Than You Think” explicitly states: “Corporate valuation isn’t about how much money you make, it’s about certainty that those earnings will continue without drama.”
Answer 2: C - $3 million
“Why Your Profitable Business Is Worth Less Than You Think” calculation:
Low risk company: $1M EBITDA × 6x multiple = $6M
High risk company: $1M EBITDA × 3x multiple = $3M
Difference: $6M - $3M = $3 million
