Exam 6: Taking Over An Existing Business

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

When a family member enters the family business,he or she is immediately accepted by nonfamily employees due to his/her position.

To ensure that all back taxes have been paid,a potential buyer should inspect

A key factor in business valuation is review of what other companies in the industry have sold for.

In Scenario 6-2 above,the tangible assets of the business would include all but which of the following?

All but which of the following are important considerations when determining how much should be paid for an existing business?

Benjamin has recently received a large estate settlement,and he is eager to use the money towards 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?

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

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

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

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

List and describe two advantages and two disadvantages of buying an existing business.

In Scenario 6-2 above,the value of the craft store comes from all but which of the following?

In Scenario 6-1 above,all but which of the following factors should be considered by Jerry in his analysis of an existing business for sale?

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

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

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

Before any serious discussion of purchasing a business occurs,a/an ____ should be conducted.

The most practical method of paying for a business is

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