Question 1

Accounts receivable are rarely worth face value,and should be "aged" when evaluating a company's assets.

Accepted Answer

A) True 
 B)False

Question 2

The first step an entrepreneur should take when acquiring an existing business is to:

Accepted Answer

A) explore financing options. 
B) prepare a list of potential candidates. 
C) analyze his/her skills,abilities,and interests in an honest self-audit. 
D) contact existing business owners in the area and ask if their companies are for sale. 
A) explore financing options. 
B) prepare a list of potential candidates. 
C) analyze his/her skills,abilities,and interests in an honest self-audit. 
D) contact existing business owners in the area and ask if their companies are for sale.

Question 3

When conducting a self-evaluation,it is important to consider:

Accepted Answer

A) what kind of business you want to have and want to avoid. 
B) how much money you have to invest. 
C) what kind of people you like to work with. 
D) how good are your sales and negotiating skills. 
A) what kind of business you want to have and want to avoid. 
B) how much money you have to invest. 
C) what kind of people you like to work with. 
D) how good are your sales and negotiating skills.

Question 4

The bargaining zone is the area within which the buyer and the seller cannot reach an agreement

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an intangible asset?

Accepted Answer

A) Building 
B) Machinery 
C) Vehicles 
D) Trademark 
A) Building 
B) Machinery 
C) Vehicles 
D) Trademark

Question 6

Accounts receivable in an existing business:

Accepted Answer

A) are rarely worth their face value. 
B) unlike inventory,are often worth their face value. 
C) appreciate over time due to interest and penalties. 
D) are not a significant consideration when buying an existing business. 
A) are rarely worth their face value. 
B) unlike inventory,are often worth their face value. 
C) appreciate over time due to interest and penalties. 
D) are not a significant consideration when buying an existing business.

Question 7

The most common reasons owners of small- and medium-sized businesses give for selling their businesses are:

Accepted Answer

A) need for money and low return on investment. 
B) boredom and burnout. 
C) low return on investment and burnout. 
D) poor location and low return on investment. 
A) need for money and low return on investment. 
B) boredom and burnout. 
C) low return on investment and burnout. 
D) poor location and low return on investment.

Question 8

The adjusted balance sheet method of valuing a business changes the book value of net worth to reflect actual market value.

Accepted Answer

A) True 
 B)False

Question 9

Ralph buys a software business from Waldo in Columbus,Ohio.As part of the deal,Waldo signs a covenant not to compete by opening another software business anywhere in Ohio for the rest of his life.Such a covenant would be enforceable.

Accepted Answer

A) True 
 B)False

Question 10

The valuation approach that considers the value of goodwill is the:

Accepted Answer

A) balance sheet technique. 
B) excess-earnings method. 
C) discounted future earnings approach. 
D) market approach. 
A) balance sheet technique. 
B) excess-earnings method. 
C) discounted future earnings approach. 
D) market approach.

Question 11

According to the discounted future earnings technique,a dollar earned in the future is worth more than a dollar earned today.

Accepted Answer

A) True 
 B)False

Accounts receivable are rarely worth face value,and should be "aged" when evaluating a company's assets.

The first step an entrepreneur should take when acquiring an existing business is to:

When conducting a self-evaluation,it is important to consider:

The bargaining zone is the area within which the buyer and the seller cannot reach an agreement

Which of the following is an intangible asset?

Accounts receivable in an existing business:

The most common reasons owners of small- and medium-sized businesses give for selling their businesses are:

The adjusted balance sheet method of valuing a business changes the book value of net worth to reflect actual market value.

Ralph buys a software business from Waldo in Columbus,Ohio.As part of the deal,Waldo signs a covenant not to compete by opening another software business anywhere in Ohio for the rest of his life.Such a covenant would be enforceable.

The valuation approach that considers the value of goodwill is the:

According to the discounted future earnings technique,a dollar earned in the future is worth more than a dollar earned today.

Entrepreneurs: the Driving Force Behind Small Business

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Creating a Solid Financial Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

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Exam 5: Buying an Existing Business

Accounts receivable are rarely worth face value,and should be "aged" when evaluating a company's assets.

The first step an entrepreneur should take when acquiring an existing business is to:

When conducting a self-evaluation,it is important to consider:

The bargaining zone is the area within which the buyer and the seller cannot reach an agreement

Which of the following is an intangible asset?

Accounts receivable in an existing business:

The most common reasons owners of small- and medium-sized businesses give for selling their businesses are:

The adjusted balance sheet method of valuing a business changes the book value of net worth to reflect actual market value.

Ralph buys a software business from Waldo in Columbus,Ohio.As part of the deal,Waldo signs a covenant not to compete by opening another software business anywhere in Ohio for the rest of his life.Such a covenant would be enforceable.

The valuation approach that considers the value of goodwill is the:

According to the discounted future earnings technique,a dollar earned in the future is worth more than a dollar earned today.

Entrepreneurs: the Driving Force Behind Small Business

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Creating a Solid Financial Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

Filters