When buying a business, an entrepreneur can usually purchase equipment and fixtures at prices well below their book value.

Name: When buying a business, an entrepreneur can usually purchase equipment and fixtures at prices well below their book value.
Brand: Quizplus
Rating: 4.9 (30 reviews)

Question

Quizplus · Accepted Answer

This is because equipment and fixtures may have been depreciated on the seller's financial statements, but still have plenty of useful life left. Therefore, the selling price may not reflect the true value of these assets.

When Buying a Business, an Entrepreneur Can Usually Purchase Equipment