Suppose that a business available for purchase has shown an average net profit of $40,000 for the
Question:
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?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
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
Question Posted: