Ch 7 Video Pros and Cons of Buying a Franchise

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The​ ___________ area of the due diligence investigation on a business or franchise being considered for purchase includes investigating the status of the​ following: accounts​ receivable, lease​ arrangements, business​ records, and intangible assets.

asset valuation

There are disadvantages to buying an existing business. Which of the following is NOT a disadvantage that entrepreneurs should consider when they are considering buying an existing​ business?

satisfactory location

When buying a​ business, entrepreneurs must search for a business that fits best with their background and personal aspirations. Which of these is not one of the three steps in conducting an effective search for the right business or franchise to​ buy?

Developing a list of criteria that define potential pitfalls

There are advantages to buying an existing business. Which of the following is NOT an advantage that entrepreneurs should consider when they are considering buying an existing​ business?

trade credit needs to be established

To make negotiation for an existing business​ work, the two sides must structure the deal in a way that is acceptable to both parties.​ ____________ is where the buyer purchases the business in two​ phases, getting to 20 to 70 percent immediately and agreeing to buy the remainder within a specific time period.

​Two-step sale


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