Week 13 Reading Reflection

1.) While reading through this weeks reading I found myself to be most surprised by the model of traditional pricing and how the net worth and salaries factor into the pricing becoming different. Another aspect was the checklist provided in the text showing the proper way to analyze a business, which caught me off guard.

2.) I wouldn't say I found myself too confused during the reading, but I do wish the author would have properly defined certain words that were commonly used through out like undercapitalization. The other minor confusion was on discounted earnings method.

3.) First question and that would be does avoiding start up cost eventually lead to an advantage. Second question I had is how could two business be valued the same, but one does not have a sufficient return.

4.) I didn't find anything in the reading to be wrong at all. The author did a spectacular job at properly describing mostly everything we read meaning terminology and using proper models.