A Key Question to Ask When Buying an On-Going Small

question 3

Multiple Choice

A key question to ask when buying an on-going small business is which of the following?

• A)How old is the business?
• B)Where should you retire someday?
• C)Can you become a millionaire by buying this business?
• D)How many personnel are going to remain?

Understand the concept and calculation of market capitalization.

Comprehend the importance and applications of Customer Relationship Management (CRM) systems.

Identify and illustrate customer-touching and customer-facing CRM applications.

Analyze real-world CRM adoption cases including Tesco's search for an optimal CRM solution.

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Definitions:

Corporate Form

Corporate form refers to the legal structure of an organization as a corporation, which is a legal entity distinct from its owners, with its rights, privileges, liabilities, and regulations.

Business Ownership

The legal right or status of possessing a company or trade, encompassing sole proprietorships, partnerships, corporations, and other entity structures.

Advantages

Benefits or favorable aspects that contribute to achieving success in a certain context, often used to compare options in decision-making processes.

Agency Costs

Agency costs arise from conflicts of interest between managers and shareholders, leading to expenses that do not necessarily benefit the shareholders.