When Purchasing a Business, Non-Liquid Assets

question 30

Multiple Choice

When purchasing a business, non-liquid assets:

• A) should by ignored for business planning purposes.
• B) should be subjected to an independent appraisal.
• C) should be considered not to have any value.
• D) should be valued at 20% of total fixed assets.

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Definitions:

Inputs

Resources, information, or efforts that are put into a system or process to achieve outputs or outcomes.

Individual

Refers to a single, separate organism or entity, especially when considering human beings as distinct units with unique characteristics.

Equity Theory

A psychological theory suggesting that employees are motivated by fairness, and that perceived inequities can lead to dissatisfaction and changes in behavior.

Equity Exists

A condition or situation in which fairness is upheld, and all individuals have equal opportunities and treatment.