The Main Reason a Buyer Purchases an Existing Business Is

question 119

Multiple Choice

The main reason a buyer purchases an existing business is for:

• A) its future income and profits for earning potential.
• B) its customer base and access to those customers.
• C) its tangible assets and the ability to liquidate those assets.
• D) its goodwill.

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Definitions:

Extraordinary Items

Events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence, significantly impacting a company's financial position.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the IFRS Foundation and the International Accounting Standards Board to ensure global consistency and transparency in financial reporting.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, profits, or losses.