Suppose that a business available for purchase has shown an average net profit of $40,000 for the

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Suppose that a business available for purchase has shown an average net profit of $40,000 for the past five years. During these years, the amount of profit fluctuated between $20,000 and $60,000. The business is in a highly competitive industry and its purchase requires only a small capital outlay. Thus, the barriers to entry are low. What are your assumptions? What value might you use in negotiating the purchase price?

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Small Business Management Launching and Growing New Ventures

ISBN: 978-0176532215

6th Canadian edition

Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy

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