Entrepreneurship Chapter 4 Flashcard

Front

You can find businesses for sale through all of the following resources EXCEPT: Landlords and leasing agents, Lawyers and Bankers, Business Brokers, Financial Advisors

Back

Financial Advisors

Front

When a business builds up goodwill and name recognition, that is also called what?

Back

Customer loyalty

Front

Advantages of buying an existing business are all of the following except:
- They already have customers
- The seller may train a new owner
- There are prior records of revenues, expenses, and profits

Back

Financial arrangements can be harder than other businesses

Front

Disadvantages of buying an existing business are all of the following EXCEPT: They have lots of customers, They may not be making a profit, Capital is required, Serious problems may be inherited.

Back

They have lots of customers

Front

Buying a business is a complicated process that requires a lot of thought. True or False?

Back

True

Front

When thinking about buying a business, you should never ask the owner for the past history, the reason for selling, and its financial performance.

Back

False

Front

An expert on determining the value of a business is called

Back

Valuator

Front

Advantages for working for a family business include all of the following EXCEPT: Pride and sense of mission, Working with relatives, Your efforts benefit people you care about, Family Politics

Back

Family Politics

Front

A legal agreement that gives an individual the right to market a company's products or services in a particular area is called a

Back

Franchise

Front

Franchise opportunities are limited and only available in certain fields

Back

False