Examlex
When buying an existing business,the prospective buyer should ask questions about the operation of the business.Which of the following would be an INAPPROPRIATE question to ask?
Contingent Liability
A potential financial obligation that may occur in the future depending on the outcome of a specific event.
Lawsuits
Legal actions or proceedings brought by one party against another for enforcing or defending a legal right.
Known Liabilities
Obligations or debts of a business that are quantifiable and for which the entity is certain about the amount and timing of payment.
Times Interest Earned Ratio
A financial metric that measures a company's ability to meet its interest obligations based on its current earnings.
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