Everest is negotiating to purchase an existing business.One provision he should write into the sale contract is:
A)access to the seller's customer list.
B)disclosure of the business's revenues for the last year.
C)a statement of the royalties payable to the seller.
D)a non-compete agreement.

Question

Quizplus · Accepted Answer

A non-compete agreement would ensure that the seller cannot start a similar business in the same market and prevent competition. It is an important provision to protect the purchaser's investment in the business. Access to the customer list and disclosure of revenues can also be important, but a non-compete agreement takes precedence in ensuring long-term success and profitability of the purchased business. A statement of royalties payable may not be relevant in all businesses and can be negotiated separately.

Everest Is Negotiating to Purchase an Existing Business