Exam 6: Taking Over an Existing Business

You should never ask the owners of a business where you are a customer whether they are interested in selling their business.

Rob is selling a business with machinery that has been protected from unauthorized use or infringement for the next three years. What type of intangible asset does this involve?

The most realistic approach for the buyer in determining the value of tangible assets is through ______.

Analyze three areas that should be researched when deciding whether or not to purchase an existing business.

A business that brings sellers of their businesses together with potential buyers is known as ______.

Word-of-mouth information through friends and family may turn up business opportunities that do not appear through formal channels.

Goodwill is an example of a tangible asset.

The most practical method of paying for a business is ______.

Buying an existing business looks appealing to the potential business owner for which of the following reasons?

Which of the following is a guideline that should be followed in a family business?

Determining the price offered for a business should begin by adding the value of the tangible and intangible assets with the sales potential of the business.

Industry averages exist comparing expenses to sales for every size and type of business.

Aging accounts receivable refers to the process of ______.

Many good business opportunities are never formally advertised. Instead, that information is found through which of the following?

______ is a current value for a company's long-term future cash flows.

A method of determining the value of a business based on the worth of its assets is called ______.

About half of all family businesses survive through the second generation.

An income statement method of business valuation focuses more on cash flow than asset value.

Along with purchasing a successful ice cream shop, Wilma acquired the building, as well as ice cream making equipment and enough inventories to operate for a month. These are best known as what type of assets?

Brokers take classes and pass examinations to become certified business intermediaries.