Question 1

Due diligence can be defined as ________.

Accepted Answer

A) The exercise of reasonable care in the evaluation of a business opportunity 
B) The exercise of sensible care in the evaluation of a business opportunity 
C) The exercise of rational care in the evaluation of a business opportunity 
D) The exercise of judicious care in the evaluation of a business opportunity 
E) The exercise of equitable care in the evaluation of a business opportunity 
A) The exercise of reasonable care in the evaluation of a business opportunity 
B) The exercise of sensible care in the evaluation of a business opportunity 
C) The exercise of rational care in the evaluation of a business opportunity 
D) The exercise of judicious care in the evaluation of a business opportunity 
E) The exercise of equitable care in the evaluation of a business opportunity

Question 2

What method(s)of valuation would you use? Why?

Accepted Answer

The primary methods of valuation are ass

Question 3

A common undisclosed reason to sell a business is not ________.

Accepted Answer

A) Lack of sufficient cash flow 
B) Unprofitability 
C) Entrance of new competitors 
D) Pending or active litigation 
E) Wanting to retire 
A) Lack of sufficient cash flow 
B) Unprofitability 
C) Entrance of new competitors 
D) Pending or active litigation 
E) Wanting to retire

Question 4

Today,a quick scan of the Internet for information on the company and/or owner can provide ready access to information such as ________.

Accepted Answer

A) Customer satisfaction 
B) Press coverage 
C) Legal issues 
D) Customer dissatisfaction 
E) All of the above 
A) Customer satisfaction 
B) Press coverage 
C) Legal issues 
D) Customer dissatisfaction 
E) All of the above

Question 5

The most common standards for asset valuation do not include which of the following?

Accepted Answer

A) Book value 
B) Adjusted book value 
C) Liquidation value 
D) Adjusted liquidation value 
E) Replacement value 
A) Book value 
B) Adjusted book value 
C) Liquidation value 
D) Adjusted liquidation value 
E) Replacement value

Question 6

In a whole business sale,the buyer acquires ________ of the company,known or unknown.

Accepted Answer

A) All assets and liabilities 
B) Only the assets 
C) None of the liabilities 
D) The building 
E) The customers 
A) All assets and liabilities 
B) Only the assets 
C) None of the liabilities 
D) The building 
E) The customers

Question 7

Approximately 50,000 businesses change ownership each year.

Accepted Answer

A) True 
 B)False

Question 8

Difficulty in finding and retaining necessary staff is a common undisclosed reason to sell a business.

Accepted Answer

A) True 
 B)False

Question 9

Liquidation value is a determination of the net cash that could be obtained through disposing of assets via a quick sale,with liabilities either paid off or negotiated away.

Accepted Answer

A) True 
 B)False

Question 10

As the buyer in a negotiation,you are working to do all of the following except ________.

Accepted Answer

A) Secure the best price 
B) Reduce your initial investment capital costs 
C) Maximize returns 
D) Give the buyer the most you can afford 
E) None of the above 
A) Secure the best price 
B) Reduce your initial investment capital costs 
C) Maximize returns 
D) Give the buyer the most you can afford 
E) None of the above

Due diligence can be defined as ________.

What method(s)of valuation would you use? Why?

A common undisclosed reason to sell a business is not ________.

Today,a quick scan of the Internet for information on the company and/or owner can provide ready access to information such as ________.

The most common standards for asset valuation do not include which of the following?

In a whole business sale,the buyer acquires ________ of the company,known or unknown.

Approximately 50,000 businesses change ownership each year.

Difficulty in finding and retaining necessary staff is a common undisclosed reason to sell a business.

Liquidation value is a determination of the net cash that could be obtained through disposing of assets via a quick sale,with liabilities either paid off or negotiated away.

As the buyer in a negotiation,you are working to do all of the following except ________.

Entrepreneurs Recognize Opportunities

Franchising

The Business Plan: Road Map to Success

Creating Business From Opportunity

Exploring Your Market

Developing the Right Marketing Mix and Plan

Pricing and Credit Strategies

Integrated Marketing Communications

Marketing Globally

Smart Selling and Effective Customer Service

Understanding and Managing Start-Up, fixed, and Variable Costs

Using Financial Statements to Guide a Business

Cash Flow and Taxes

Financing Strategy: Debt, equity, or Both

Addressing Legal Issues and Managing Risk

Operating for Success

Location, facilities, and Layout

Human Resources and Management

Leadership and Ethical Practices

Franchising, licensing, and Harvesting: Cashing in Your Brand

Filters

Exam 3: Finding Opportunity in an Existing Business

Due diligence can be defined as ________.

What method(s)of valuation would you use? Why?

A common undisclosed reason to sell a business is not ________.

Today,a quick scan of the Internet for information on the company and/or owner can provide ready access to information such as ________.

The most common standards for asset valuation do not include which of the following?

In a whole business sale,the buyer acquires ________ of the company,known or unknown.

Approximately 50,000 businesses change ownership each year.

Difficulty in finding and retaining necessary staff is a common undisclosed reason to sell a business.

Liquidation value is a determination of the net cash that could be obtained through disposing of assets via a quick sale,with liabilities either paid off or negotiated away.

As the buyer in a negotiation,you are working to do all of the following except ________.

Entrepreneurs Recognize Opportunities

Franchising

The Business Plan: Road Map to Success

Creating Business From Opportunity

Exploring Your Market

Developing the Right Marketing Mix and Plan

Pricing and Credit Strategies

Integrated Marketing Communications

Marketing Globally

Smart Selling and Effective Customer Service

Understanding and Managing Start-Up, fixed, and Variable Costs

Using Financial Statements to Guide a Business

Cash Flow and Taxes

Financing Strategy: Debt, equity, or Both

Addressing Legal Issues and Managing Risk

Operating for Success

Location, facilities, and Layout

Human Resources and Management

Leadership and Ethical Practices

Franchising, licensing, and Harvesting: Cashing in Your Brand

Filters