A Common Reason for Selling a Small Business Is

question 12

Multiple Choice

A common reason for selling a small business is

• A)to be able to spend more time on other areas of interest
• B)to start another small business
• C)to maximize the owner's return on their investment of time and capital
• D)to avoid having to repay some of the business's debt

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Definitions:

Existing Partner(s)

Refers to current members of a partnership who share ownership and responsibility for the business.

Mutual Agency

A principle in partnership where each partner is both an agent and a principal, permitting each partner to bind the partnership in contract within the scope of the partnership’s business.

Unlimited Liability

A legal obligation where an individual's responsibility for debt extends beyond what they've invested in a business, potentially affecting personal assets.

Partners' Capital Statement

A financial report that shows the changes in each partner's equity in a partnership over a period of time.