- CFA Exams
- CFA Level I Exam
- Study Session 11. Equity Valuation (3)
- Reading 31. Private Company Valuation
- Subject 8. Valuation discounts and premiums
CFA Practice Question
The benefits of control include the abilities to:
II. Set management compensation and perks.
III. Pay (or not pay) dividends to shareholders.
IV. Control the operation and course of the business.
I. Appoint or change management.
II. Set management compensation and perks.
III. Pay (or not pay) dividends to shareholders.
IV. Control the operation and course of the business.
Correct Answer: I, II, III and IV
Control owners also possess the abilities to control the board of directors, liquidate, sell-out, or recapitalize the company, acquire, lease, or liquidate business assets, and negotiate mergers and acquisitions.
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