Exam 10: Buying a Business

When considering purchasing an existing business you should pay careful attention to the business's market penetration.What might increasing market share indicate? Decreasing market share?

Free

(Essay)

4.8/5

(33)

Question 1

Correct Answer:

Verified

If its market share has been increasing,then perhaps you should anticipate further growth.But if the business's market penetration has been declining or static,you should be aware that something could be wrong with the operation.It may be that the business is nearing the end of its life cycle.A shrewd seller,aware that the operation is approaching a natural decline,may be bailing out.

All of the following are advantages of buying an existing business,except:

Free

(Multiple Choice)

4.8/5

(32)

Question 2

Correct Answer:

Verified

What is the rule-of-thumb for evaluating businesses with few tangible assets?

Free

(Essay)

4.7/5

(37)

Question 3

Correct Answer:

Verified

The rule of thumb is to calculate the selling price as a percentage of the net or gross annual receipts of the business.This method is illustratedfor various types of businesses.

How can you prepare for the running of a family business?

(Essay)

4.9/5

(26)

Question 4

Acquisition candidates may include present or potential competitors of your current employer,suppliers,customers,and perhaps even your present employer.

(True/False)

4.8/5

(44)

Question 5

The data provided by the SME Benchmarking Tool database of Industry Canada can provide performance benchmarks for the financial planning of both startup and established businesses.

(True/False)

4.9/5

(35)

Question 6

All of the following are subsystems in the systems view of family business,except:

(Multiple Choice)

4.8/5

(40)

Question 7

The legal aspects of doing business are becoming increasingly more complex and the use of a lawyer is practically a fact of business life.

(True/False)

4.7/5

(31)

Question 8

Describe what is meant by "earn-out".

(Essay)

4.8/5

(36)

Question 9

The most important intangible assets to an owner of a business are all of the following,except:

(Multiple Choice)

4.8/5

(44)

Question 10

Which of the following reasons for why an existing business is up for sale should concern you?

(Multiple Choice)

4.8/5

(24)

Question 11

Briefly describe the five most important financial factors you must consider before buying a business.

(Essay)

4.8/5

(28)

Question 12

Which of the following is considered a disadvantage of buying an existing business?

(Multiple Choice)

4.8/5

(39)

Question 13

About 80 percent of all family businesses report that they have a succession plan in place.

(True/False)

4.8/5

(35)

Question 14

All of the following are balance sheet methods of evaluation,except:

(Multiple Choice)

4.7/5

(39)

Question 15

Confidential advisors,such as your banker,are a difficult source to use when it comes to finding a new business,since they generally share their information with several of their clients.

(True/False)

4.8/5

(35)

Question 16

What makes a family business so challenging?

(Essay)

4.8/5

(27)

Question 17

It is generally conceded that the most important issue facing most family businesses is the question of succession.

(True/False)

4.8/5

(28)

Question 18

What might chronically low cash flow indicate?

(Essay)

4.9/5

(36)

Question 19

Which of the following is not one of the key marketing considerations when thinking about buying an existing business?

(Multiple Choice)

4.8/5

(36)

Question 20

Showing 1 - 20 of 28

When considering purchasing an existing business you should pay careful attention to the business's market penetration.What might increasing market share indicate? Decreasing market share?

All of the following are advantages of buying an existing business,except:

What is the rule-of-thumb for evaluating businesses with few tangible assets?

How can you prepare for the running of a family business?

Acquisition candidates may include present or potential competitors of your current employer,suppliers,customers,and perhaps even your present employer.

The data provided by the SME Benchmarking Tool database of Industry Canada can provide performance benchmarks for the financial planning of both startup and established businesses.

All of the following are subsystems in the systems view of family business,except:

The legal aspects of doing business are becoming increasingly more complex and the use of a lawyer is practically a fact of business life.

Describe what is meant by "earn-out".

The most important intangible assets to an owner of a business are all of the following,except:

Which of the following reasons for why an existing business is up for sale should concern you?

Briefly describe the five most important financial factors you must consider before buying a business.

Which of the following is considered a disadvantage of buying an existing business?

About 80 percent of all family businesses report that they have a succession plan in place.

All of the following are balance sheet methods of evaluation,except:

Confidential advisors,such as your banker,are a difficult source to use when it comes to finding a new business,since they generally share their information with several of their clients.

What makes a family business so challenging?

It is generally conceded that the most important issue facing most family businesses is the question of succession.

What might chronically low cash flow indicate?

Which of the following is not one of the key marketing considerations when thinking about buying an existing business?

Buying a Franchise

Marketing

Financing Your Business and Accounting Practices

Legal Considerations

Business Plans

Cost and Profitability Assessment

Market Feasibility Study

Exploring Business Ideas and Opportunities

Assessing Your Potential for an Entrepreneurial Career

Sales

Filters