1. A business proposal which is aimed at attracting prospective investors includes information about the new or expanding business, including the customer, market potential,and management, but generally does not include exit strategy

True or false?

2. A diventure strategy involves a series of planned abandonment which are announced ahead of time, but liquidation strategy involves an element of secrecy

True or false

3. The industry average P/e for athletics and apparel industry is 8. If Nike has earnings per share of $2.5, what would be a fair price for its stock using the relative valuation approach assuming Nike is comparable to the average company in the athletics and apparel industry?

a) $20

b) 25

c) 30

d) 35

e) 40