Exam 6: Taking Over An Existing Business

When gathering information about an existing business in order to evaluate its potential,all but which of the following questions should be asked?

The fact that a business's image is difficult to change is a distinct advantage when taking over an existing business.

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

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

In Scenario 6-1 above,since the sporting goods store has a huge inventory,Jerry needs to be familiar with which of the following codes?

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?

Which of the following is not an advantage to buying an existing business?

Goodwill can be seen as compensation to the seller for which of the following?

The difference between the purchase price of a company and the net value of the tangible assets is called

In Scenario 6-1 above,all but which of the following are places Jerry could have started looking for businesses that were for sale?

Within his profession,Alex Wilson serves as an intermediary that brings sellers of businesses together with potential buyers.Alex can best be described as a/an

Trade names,customer lists,and goodwill are examples of which kinds of assets?

In buying a business,if tangible assets include machinery that has no,or very little value,the buyer may wish to consider

A list of liabilities of an existing business would include

Which of the following types of business are characterized by two or more members of the same family who control or are directly involved in and own a majority of the business?

Due diligence is the process of fact finding to determine the total condition of a business being considered for purchase.

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

Everyone involved in a family business has a different perspective.These perspectives include all but which of the following?

Samantha was in the final stages of selling her existing business,but she backed out of the deal at the last minute because the buyer asked her to sign a contract stating that she would not enter into a similar business within the state for at least 15 years.This is an example of

Industry averages for expense ratios comparing expenses to ____ exist for every size and type of business.