A retailer seeking to purchase an existing retail business needs to verify the seller's statement of income.The prospective buyer should ________.

Question

Quizplus · Accepted Answer

The best choice would be to ask the seller for audited income tax statements on the business. This provides a reliable and verifiable record of the business's income and can help the buyer make an informed decision about the purchase. Accepting the seller's "word" or sampling sales during a representative two-week time period may not provide an accurate picture of the business's income, and judging sales based on industry benchmarks may not take into account the specific circumstances of the business being sold.

A Retailer Seeking to Purchase an Existing Retail Business Needs