11 Jan The focus of the competitor

Question 1

2 out of 2 points

Normally, when buying a business, the seller:

Question 2

2 out of 2 points

The biggest source for the best companies to buy is:

Question 3

2 out of 2 points

Before buying an existing business, the buyer should analyze two external elements of the business:

Question 4

2 out of 2 points

The inventory in an existing business:

Question 5

2 out of 2 points

The capitalized earnings approach determines the value of a business by capitalizing its expected profits using:

Question 6

2 out of 2 points

When a buyer is reviewing a candidate company’s lease arrangements, location and appearance, intangible assets, etc., he is answering what basic acquisition question?

Question 7

2 out of 2 points

Once an entrepreneur has evaluated him/herself, the next step in the acquisition process would be to:

Question 9

2 out of 2 points

Which of the following is an intangible asset?

Question 10

2 out of 2 points

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:

Question 11

2 out of 2 points

Which of the following is a way to smooth the transition of leadership/management from the seller of a business to the buyer?

Question 12

2 out of 2 points

When the buyer is examining the income statements, tax returns, and balance sheets of the business, he/she is seeking an answer to the basic question:

Question 13

2 out of 2 points

When buying an existing business, one should remember that:

Question 14

2 out of 2 points

When it comes to buying an existing business, it is not uncommon to find it:

Question 15

2 out of 2 points

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

Question 16

2 out of 2 points

Your cash budget and an explanation of how much money you need to make your company and product a long-term success are the subject matter of the:

Question 17

2 out of 2 points

A well-developed business plan provides the entrepreneur with a number of benefits, such as:

Question 18

2 out of 2 points

Defining the target market’s potential and describing its characteristics is part of the:

Question 19

2 out of 2 points

The second essential purpose for creating a business plan is:

Question 20

2 out of 2 points

The primary purpose of building a business plan is to:

Question 21

2 out of 2 points

________ are long-range, broad statements of what the company plans to accomplish in the distant future, and they guide the overall direction of the company.

Question 22

2 out of 2 points

The ________ becomes the document that summarizes the analysis that has been done to justify a new business.

Question 23

2 out of 2 points

Proving that a profitable market exists involves:

Question 24

2 out of 2 points

A business plan:

Question 25

2 out of 2 points

The C of the five Cs that is a synonym for “cash flow” is:

Question 26

2 out of 2 points

A business plan performs a number of functions including:

Question 27

2 out of 2 points

The ________ is the first part of the business plan. It summarizes all the relevant points of the deal, but it should be the last part written.

Question 28

2 out of 2 points

The focus of the competitor analysis section of the business plan is to:

Question 29

2 out of 2 points

A ________ is what a customer gains from the product or service feature.

Question 30

2 out of 2 points

The C of the five Cs that relates to the circumstances relating to the business, such as potential growth in the market, form of ownership, location, etc., is called: