Once a Decision Has Been Made to Sell a Business

question 30

Multiple Choice

Once a decision has been made to sell a business, what choice is available to the small business owner?

• A)Sell the business intact to a third party
• B)Sell the business to a competitor
• C)Do an initial public offering
• D)All of these

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Definitions:

Accrued Expense

An expense that has been incurred but not yet paid, recognized on the financial statements.

Long-Lived Asset

An asset expected to provide economic benefits over a period longer than one year, such as buildings or machinery.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and net income.

Net Income

The total profit or loss of a company after all revenues, costs, and expenses have been accounted for, often referred to as the bottom line.