Exam 5: Buying an Existing Business

When buying an existing business,one should remember that:

Part of a "self-audit" when buying a business is to ask yourself,"what do I expect to get out of the business" and "how much can I put into the business?"

One of the "rules" of successful negotiations is "not everything is negotiable.".

In evaluating an existing business,entrepreneurs should seek to answer several questions,including:

When buying an existing business,the potential buyer should remember that:

The valuation method that is commonly used,but tends to oversimplify the valuation process,is called:

To be enforceable,a covenant not to compete must be:

What questions should the buyer ask in determining the value of the seller's assets?.

The business acquisition process should begin with creating a list of criteria for selecting the business to buy.

Owners who do not want to sell a business outright,but want to either stay around for a while or surrender control gradually can use a restructuring strategy.

Goodwill is a capital asset that the business buyer cannot depreciate or amortize for tax purposes.

An agreement between a business seller and the buyer,in which the seller agrees not to open a competing business within a specific time period and geographic area,is called a:

If the firm owns any trademarks,patents,or copyrights,or has built up a positive reputation with customers and suppliers,the business has what is/are called:

A disadvantage of the market approach to valuing a business is finding similar companies for comparison.

In a business sale,the buyer seeks to:

One advantage of buying an existing business is:

To avoid a bumpy transition,a business buyer should do the following:

In a business sale,the seller is looking to:

The inventory in an existing business:

When the location of the business is critical to its success,it may be wise to purchase a business in another location.