Define the term due diligence how is it applied to the

Question

1. Identify and discuss the three underlying issues in the evaluation of a business.

2. Define the term due diligence. How is it applied to the acquisition of an existing venture?

3. Explain how the price/earnings ratio method of valuation works. Give an example.

4. What are the steps involved in using the discounted earnings method? Give an example.

5. Explain why the following are important factors to consider when valuing a business: start-up costs, accuracy of projections, degree of control.

6. What are the potential choices for an entrepreneur to examine as the venture matures?

7. What are three of the contextual aspects that must be considered in an effective succession plan?

8. In what way can forcing events cause the replacement of an owner/manager? Cite three examples.

9. What are five qualities or characteristics successors should possess?

10. What eight steps should be followed to harvest a business? Discuss each of these steps.

Answer 1

For the following Business Management questions, provide a paper in which you have to address answers in a comprehensive, paragraph format. 1) Recognize and illustrate the three underlying issues in the assessment of a business. 2) Define the word because of diligence. Explain how is it implemented to the acquisition of the existing venture? 3) Describe how the price or earnings ratio method of valuation works. Give an illustration. 4) Illustrate what are the steps comprised in employing the discounted earnings method? Provide an illustration. 5) Describe why the following are significant factors to consider when valuing a business: start-up costs, accuracy of projections and degree of control. 6) Illustrate what are the potential choices for an entrepreneur to analyze as the venture matures? 7) Illustrate what are three of the contextual features which must be considered in an efficient succession plan?