All of the Following Are Financial Factors You Must Consider

question 31

Multiple Choice

All of the following are financial factors you must consider when buying a business, except:

• A) The trend in profits
• B) The background of the purchasing agent
• C) Ratio analysis
• D) Cash flow

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or other credit, which can be seized by the lender if the borrower defaults.

Collateral

Property or assets pledged by a borrower to secure a loan, subject to seizure on default.

Third-Party Beneficiary

A person who is not a party to a contract but who has the right to enforce it because the parties to the contract made the contract with the intent to benefit him.

Implied

Something not explicitly stated but understood to be included or involved through indirect indications or logical inference.