An Entrepreneur Is Preparing to Sell Her Business and Is

question 45

Multiple Choice

An entrepreneur is preparing to sell her business and is attempting to place a value on it. In addition to everything else in the business,she has hired some of the very best people over the years and believes that these people add considerable value to the business. These valuable people are known as

• A) the family trust.
• B) fixed assets.
• C) variable assets.
• D) intangible assets.
• E) prospectus.

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Definitions:

Gain Or Loss

A financial result that occurs when the selling price of an asset differs from its cost or adjusted basis.

Batting Cages

Enclosed areas for baseball or softball players to practice batting, typically equipped with pitching machines.

Fixed Asset Turnover Ratio

The number of dollars of sales that are generated from each dollar of average fixed assets during the year, computed by dividing the net sales by the average net fixed assets.

Days' In Assets Ratio

The Days' In Assets Ratio measures the average number of days it takes for a company to turn its inventory into sales, reflecting inventory management efficiency.