Chp 6
Caveat Emptor
(let the buyer beware) Which has been made into philosophy sometimes used by businesses to put the burden for consumer protection onto the customer
Book Value
The difference between the original acquisition cost and the amount of accumulated
Buy in
The purchase of substantially less than 100% of a business
Buyouts
The purchase of substantially of an existing business
Discounted Cash Flow
Cash flow that has been reduced in value because they are to be received in the futur
Franchise
a prepackaged business bought rented, or leased from a company called a franchisor
Heuristic
A commonsense rule; a rule of thumb
Trade Name Franchise
An agreement that provides to the franchisee only on the rights the franchisor's trade name and/or trademarks
Transfer
An endgame strategy in which ownership is moved from one person or group to another
Termination
An endgame strategy in which the owners closes down a business
Due Diligence
Is the process of investigating to determine the full and complete implications of buying a business
Takeover
The seizing of control of a business by purchasing its stock to be able to select the board of directors
Synergy
A combination in which the whole is greater than the sum of its component parts
workout
A form of business termination in which the firms legal or financial obligations are not fully met at closing
start-up
A new business, starting from scratch
Broker
A person who buys and sells goods or assets for others
serial entrepreneur
A person who opens multiple businesses throughout his or her career
Intangibles
Assets, such as patents or trademarks, and liabilities such accounts payable that have no physical existence
walkaway
Business in termination in which the entrepreneneur ends with its obligations met
