Answer these 20+ Taking Over an Existing Business MCQs and assess your grip on the subject of Taking Over an Existing Business. Scroll below and get started!
A. Worth
B. Rate
C. Value
D. All of them
A. True
B. False
A. True
B. False
A. Free cash flow
B. Discounted cash flow
C. Undiscounted cash flow
D. Capitalized cash flow
A. True
B. False
A. Clearly visible
B. Not visible
C. Evident
D. Conspicuous
A. Owner
B. Broker
C. Bank broker
D. None of them
A. Restricts the seller from entering same business
B. Restricts the seller from entering a specified area
C. Restricts the seller from entering for a certain amount of time
D. All of them
A. Multiples to revenue
B. Multiples to free cash flow
C. Both a and b
D. None of the mentioned
A. Be Seen
B. Be Examined
C. Be not visible
D. Both a and b
A. Sales
B. Expenses
C. Income
D. Profit
A. To be hired, family members must meet more stringent criteria than nonfamily members.
B. Family members should be supervised by older family members whenever possible.
C. Family members should stay in entry-level positions indefinitely.
D. Family members must meet the same standards as nonfamily members in performance reviews.
A. The buyer
B. The seller
C. The buyer and the seller
D. Neither--the lawyer is a neutral third party
A. Sole proprietorships
B. Partnerships
C. Corporations
D. Family-owned businesses
A. Image is difficult to change.
B. There is an established customer base at the present location.
C. Employees may be loyal only to previous management.
D. The business location is unfamiliar.
A. Current asset
B. Long-term asset
C. Goodwill
D. Equipment
A. Paying a lump sum
B. Paying in installments
C. A loan from the bank
D. A loan from the Small Business Administration (SBA)
A. Financial records
B. Independent audit
C. Expense ratio
D. Working capital statement
A. Sales volume
B. Net assets
C. Gross assets
D. Accounts payable
A. Beginner’s mistakes that the new owner will not have to make
B. Tangible assets
C. Sales potential
D. Customer lists
A. Possible sources of funding
B. Possible businesses for sale
C. Possible businesses soon to be terminated
D. Possible venture capitalists
A. Intangible assets
B. Tangible assets
C. Only current assets
D. Only long-term assets
A. Real estate manager
B. Financial broker
C. Management broker
D. Business broker
A. An accountant
B. The buyer and seller themselves
C. Escrow settlement
D. A nonpartial third party
A. Balance sheet method of business valuation
B. Asset method of business valuation
C. Income statement method of valuation
D. Cash-flow method of valuation