1. Goodwill is an example of a tangible asset.
True
False
2. Inventory is an example of a tangible asset.
True
False
3. An income statement method of business valuation focuses more on cash flow than asset value.
True
False
4. Discounted cash-flow analysis consists of projecting future cash flows after debts are subtracted and before taxes are paid
True
False
5. The amount paid for goodwill should be small enough to be recovered with new profits in a reasonably short time period.
True
False
6. When running a family business, there are four overlapping perspectives on its operations: family, management, ownership, and sales.
True
False
6. All of the following are options for getting started as a business owner except
Inheriting a family business
Starting your own
Buying an existing business
Managing a joint venture
7. A list of liabilities of an existing business would include
Inventory
list of account payables
Account Receivables
Liens of creditors against assets
8. What of these is used to indicate whether sales volume is increasing or decreasing?
Audit Reports
Inventory Report
Working Capital Worksheet
Financial Records
9. To ensure that all back taxes have been paid, a potential buyer should inspect
The seller's books
Income tax returns
Unaudited financial statements
Loan agreements