Everest Is Negotiating to Purchase an Existing Business

question 68

Multiple Choice

Everest is negotiating to purchase an existing business.One provision he should write into the sale contract is:

• A)access to the seller's customer list.
• B)disclosure of the business's revenues for the last year.
• C)a statement of the royalties payable to the seller.
• D)a non-compete agreement.

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Definitions:

Rate Of Return

Accumulation or reduction in the investment value over a chosen interval, denoted as a percentage of the investment's root cost.

Outstanding Shares

The total number of shares of stock that are currently owned by investors, including restricted shares owned by the company’s officers and insiders.

Annual Dividend

The total dividend payment a company distributes to its shareholders annually, representing a share of the profits.