Questions from General Entrepreneurship


Q: What should a prospective buyer know about the seller’s inventory sources and

What should a prospective buyer know about the seller’s inventory sources and other resource contacts? How is this information obtained?

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Q: You are analyzing the financial records of the business you have been

You are analyzing the financial records of the business you have been thinking about buying. You discover that, although the firm has excellent current and quick asset ratios by industry standards (cu...

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Q: Does every business for sale have an intangible asset of goodwill?

Does every business for sale have an intangible asset of goodwill? Explain.

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Q: Which type of asset would be more difficult to value - tangible

Which type of asset would be more difficult to value - tangible or intangible? Why?

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Q: Which is more important in appraising a business—profitability or return

Which is more important in appraising a business—profitability or return on investment? Discuss.

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Q: Does competition help or hurt the valuation of a business? Explain

Does competition help or hurt the valuation of a business? Explain.

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Q: Discuss the ways in which the tangible assets of a business may

Discuss the ways in which the tangible assets of a business may be valued. What is the most realistic approach to determining a business’s true value? Why?

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Q: What is goodwill, and how may its value be determined?

What is goodwill, and how may its value be determined?

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Q: How can being close to your customers give you a competitive advantage

How can being close to your customers give you a competitive advantage?

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Q: How can a buyer determine the rate of return to use in

How can a buyer determine the rate of return to use in evaluating the worth of a business?

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