MGT 255 - Chapter 5

Card Set Information

Author:
LoveStorm
ID:
69573
Filename:
MGT 255 - Chapter 5
Updated:
2011-02-28 13:17:11
Tags:
Management
Folders:

Description:
Buying a Business
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  1. What are some advantages to buying a business?
    Reduction of risk

    Reduction of time and set-up expenses

    Reduction od competition

    Capitalization of business strength

    Possible assistance from the previous owner

    Easier planning
  2. What are some disadvantages of purchasing?
    Physical facilities

    Personnel

    Inventory

    Accounts receivable

    Financial condition

    Market

    Decisions about price
  3. Where can you find businesses for sale?
    Classified ads

    Government departments

    Trade journals

    Real estate brokers

    Other professionals

    Word of mouth
  4. Who can you determine a price/value of a business?
    Market value

    Asset value - book value/replacement value

    Earnings value - capitalization of earnings method/times earning method

    Combination Methods - analytical method/historical method

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