Exam 6: Taking Over An Existing Business

In the Entre-Perspectives,what product has the Zildjian family been making since 1623?

Goodwill is an example of a tangible asset.

When purchasing a business,the people working there can be disregarded since they will probably not stick around after the business is in new hands.

All of the following are options for getting started as a business owner except

In purchasing an existing business,Alice has decided to lease the equipments and fixtures from the original owner rather than purchasing it outright to save money initially.This is an example of

Existing businesses do not have to be scrutinized carefully to determine whether they are a worthwhile investment of time and money.

To protect yourself from unknown tax liabilities when buying the stock of a business,it makes sense to place part of the purchase price in an escrow account that is earmarked to pay for any corporate liabilities.This is referred to as

When evaluating the worth of the inventory for purchasing purposes,the primary concern should be

The overall value of tangible assets is determined through all of the following except

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

Tabitha is considering the purchase of a seemingly successful retail establishment,but first she would like to gain an understanding of why the business is being sold.With whom should she speak?

According to the text,at any given time,there are____ thousands of small businesses for sale at any given time.

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

To effectively use operating ratios,a prospective buyer should

The worth of tangible assets is determined using which of the following methods?

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

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

A disadvantage to buying an existing business is which of the following?

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?

Real estate brokers may be a good source of potential businesses for sale since their listings may include business real estate.