It is important to remember when assessing the financial soundness of a company that:
A) if profits are adequate,there will be sufficient funds to pay salaries and fund cash flow.
B) cash flow is the key financial element in determining financial soundness.
C) revenues need to equal twice the debt load in order for the company to be viable.
D) the buyer is buying the past revenues and profits of the company.
Correct Answer:
Verified
Q23: The valuation method that is commonly used,but
Q24: The _ approach to valuing a business
Q26: Which of the following statements about valuing
Q28: Which of the following is a drawback
Q29: When seeking to evaluate the financial soundness
Q30: Normally,when buying a business,the seller:
A)does not sign
Q31: The valuation approach that considers the value
Q33: The _ approach to valuing a business
Q36: Which of the following is a criterion
Q39: An agreement between a business seller and
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