List four reasons for buying an existing business.
What will be an ideal response?
| 1.To reduce some of the uncertainties that must be faced when starting a business from the ground up |
| 2. To acquire a business with ongoing operations and established relationships with customers and suppliers |
| 3. To obtain an established business at a price below what it would cost to start a new business or to buy a franchise |
| 4. To begin a business more quickly than by starting from scratch. |
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Answer the following statements true (T) or false (F)
1. The first two steps in applying a situational theory should be to identify leadership behaviors and to identify situational conditions. 2. A leader who focuses on clarifying employees' roles and task requirements and providing rewards and punishments contingent on performance is called a transformational leader. 3. Apple's new CEO, Tim Cook, has been described as a "logistics whiz" and an "operations genius," which is evidence that he is a transformational leader. 4. The best type of leader for a rapidly changing situation is a transactional one.
Which of the following would not be a cash flow from investing activities?
a. Sale of a patent. b. Collection of interest revenue on a long-term note receivable. c. Collection of principal of a note receivable. d. Purchase of long-term investments.
Performance bonds, warranties, and insurance are examples of ________ a risk.
Fill in the blank(s) with the appropriate word(s).
To encourage prompt payment, sellers offer a(n) ____________________
Fill in the blank(s) with correct word