Which of the Following Is Not a Key Question a Prospective

question 1

Multiple Choice

Which of the following is not a key question a prospective buyer needs to ask in buying a business?

• A)Why is the owner selling?
• B)What is the owner's personal net worth?
• C)How many of the personnel will remain with the firm?
• D)What type of competition exists?

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Definitions:

Fixed Assets

Long-term assets bought for use in the operation of a business, not intended for resale, such as machinery, buildings, and vehicles.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value on the balance sheet.

Buildings

Physical structures owned by a business that are used for operational purposes, considered long-term assets on the balance sheet.

Other Income/Expense

Revenue or costs that are not related to a company's main business operations, such as gains or losses from investments or foreign exchange.