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