Question Details

BUS 402 Week 4 quiz
•	Question 1

	
	If the firm owns any trademarks, patents, or copyrights, or has built up a positive reputation with customers and suppliers, the business has what is/are called:			
	
			
•	Question 2

	
	Once an entrepreneur has evaluated him/herself, the next step in the acquisition process would be to:			
	
			
•	Question 3

	
	Which method of business valuation relies on three forecasts of future earnings-optimistic, pessimistic, and most likely?			
	
•	Question 4

	
	The valuation method that is commonly used, but tends to oversimplify the valuation process, is called:			
	
			
•	Question 5

	
	Accounts receivable in an existing business:			
	
			
•	Question 6

	
	The first step an entrepreneur should take when acquiring an existing business is to:			
	
			
•	Question 7

	
	Before buying an existing business, the buyer should analyze two external elements of the business:			
	
			
•	Question 8

	An agreement between a business seller and the buyer, in which the seller agrees not to open a competing business within a specific time period and geographic area, is called a:			
	
			
•	Question 9

	When buying an existing business, one should remember that:			
	
			
•	Question 10

	
	When a buyer is reviewing a candidate company's lease arrangements, location and appearance, intangible assets, etc., he is answering what basic acquisition question?			
	
			
•	Question 11

	The process of gathering information about the company, valuing the company, and performing a detailed review of all records, agreements, and compliance is called:			
	
			
•	Question 12

	
	When the buyer is examining the income statements, tax returns, and balance sheets of the business, he/she is seeking an answer to the basic question:			
	
			
•	Question 13

	
	Normally, when buying a business, the seller:			
	
			
•	Question 14

	
	A company's P/E ratio is:			
	
•	Question 15

	When it comes to buying an existing business, it is not uncommon to find it:			
	
			
•	Question 16

	
	Potential investors tend to believe that if an entrepreneur can't develop a good plan:			
	
			
•	Question 17

	
	The intangible C that lenders examine in evaluating the business plan is that of:			
	
			
•	Question 18

	The ________ highlights significant financial and operational events in the company's life and should concentrate on the company's accomplishments.			
	
			
•	Question 19

	
	The C of the five Cs that relates to the circumstances relating to the business, such as potential growth in the market, form of ownership, location, etc., is called:			
	
			
•	Question 20

	A solid business plan is marked by a number of characteristics including:			
	
			
•	Question 21

	
	The ________ expresses the entrepreneur's vision for the company and what he/she hopes it will become.			
	Selected Answer:	  
mission statement
Correct Answer:	  
mission statement
			
•	Question 22

	
	The organization chart is described in which section of the business plan?			
	
			
•	Question 23

	Business plans need to pass three tests:			
	
			
•	Question 24

	
	The C of the five Cs that is a synonym for "cash flow" is:			
	
			
•	Question 25

	Defining the target market's potential and describing its characteristics is part of the:			
	
			
•	Question 26

	
	Investors look for which of the following when reviewing the experience of the management team of a new venture?			
	
			
•	Question 27

	The second essential purpose for creating a business plan is:			
	
			
•	Question 28

	The loan proposal portion of the business plan should include:			
	
			
•	Question 29

	
	A business plan:			
	
			
•	Question 30

	________ are short-term, specific targets which are attainable, measurable, and controllable.