If a Potential Investor Asks You About the Sales Cycle

question 5

Multiple Choice

If a potential investor asks you about the sales cycle for the business what should you do?

• A) Provide some general responses
• B) Specify the number of days in the sales cycle
• C) Immediately respond that it all depends
• D) None of the above

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Definitions:

FMV

Fair Market Value, the price at which property would change hands between a willing buyer and a willing seller, neither being under compulsion to buy or sell.

Distribution

The payment of dividends or assets to shareholders or partners from a corporation, partnership, or another type of entity.

Partnership

A type of business structure where two or more people share ownership, as well as the responsibility for managing the business and the income or losses it generates.

Ordinary Income

Income earned through salaries, wages, commissions, and interest, subject to standard tax rates.