Purchase an Existing Business or Establish Your Own? (VCE SSCE Business Management): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is goodwill in business valuation?
What is goodwill in business valuation?
Premium above net asset value for reputation
Which advantage applies when purchasing an existing business?
Which advantage applies when purchasing an existing business?
Immediate revenue from existing customers
What challenge may a new owner face after purchasing a business?
What challenge may a new owner face after purchasing a business?
Employees and customers resisting changes
Who should examine financial records during due diligence?
Who should examine financial records during due diligence?
An accountant to check tax & profit margins
What key advantage does establishing a new business offer?
What key advantage does establishing a new business offer?
Total freedom to shape the business concept
Why might a new business operate at a loss initially?
Why might a new business operate at a loss initially?
Building a customer base takes time
What does 'going concern' mean?
What does 'going concern' mean?
A business that is currently operating
Why are intangible assets difficult when purchasing?
Why are intangible assets difficult when purchasing?
They lack physical substance & are hard to value
When does establishing a new business make most sense?
When does establishing a new business make most sense?
When you have an innovative new concept
Why is securing finance easier for existing businesses?
Why is securing finance easier for existing businesses?
Historical financial records are available