Exam 6: Taking Over an Existing Business

Patents, copyrights, and trademarks protect against unauthorized use or infringements for which of the following time periods?

A major advantage of purchasing an existing business is that the customers are familiar with the location.

Discounted cash-flow analysis consists of projecting future cash flows after debts are subtracted and before taxes are paid.

Buying an existing business is becoming a more popular way to own a small business.

When discussing the purchase of an existing business, it is not necessary to get verbal understandings in writing from the seller.

Few businesses that are for sale have a high amount of ______ value.

There are not as many factors that could contribute to the sale of a business as there are reasons for business liquidations.

Using installment payments to finance a new business ensures that the business is paid for through ______.

Which of the following by itself could be a reason a business owner wants to sell a business?

The financial statements can provide access to ______, a very important piece of information for a prospective buyer to use in determining net profit.

Scenario 6-1. Jerry Jones is a young entrepreneur straight out of college. After taking a course in Small Business Management, Jerry has decided that he would like to purchase an existing business and hopefully avoid some beginner's errors. He spends some time looking and finally finds a business that appeals to him, a small sporting goods store. Jerry loves to fish and hunt. The store currently has a huge inventory in place. Jerry decides to pursue purchasing the business further. -In Scenario 6-1, which of the following would have been a good source of information on current businesses that are for sale that is often overlooked?

Benjamin has recently received a large estate settlement, and he is eager to use the money toward the purchase of a successful business that is already in operation. Which of the following should be discouraged as a source for finding businesses for sale?

Discuss three major considerations when looking at the financial condition of an existing business.

Industry-wide ______ ratios are calculated by most trade associations, many commercial banks, and accounting firms.

If an existing business is purchased, the buyer may be potentially liable for past business contracts.

An advantage in purchasing an existing business is which of the following?

A method of determining the value of a business based on its profit potential is known as a/an ______.

Describe three places a potential small business owner might go when looking for a business for sale.

The longer it takes someone to pay their account receivable, the less likely they are to ______.

Stan owns a body shop, and his cousin recently came to him desperate to get a job. Stan, who is not currently looking to hire anyone, is concerned about the effect of a new hire on profits. This concern stems from which family business perspective?