1) What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations?
The amount of due diligence that has to be completed before acquiring a venture. It makes sense that one needs to be as sure as possible that the money isn't going to be wasted when purchasing a venture, but just looking at the sheet provided in the text, it is clear that this isn't a simple process. So much research must go into the decision to ensure this is the correct choice.
2) Identify at least one part of the reading that was confusing to you.
The area that talked about the amount needed to acquire a new business was the most confusing to me. I think it is mostly because I am not a business owner so some of the terms or what exactly is being asked don't seem clear. Some examples would be "reserve to carry customer accounts" or even knowing how much money goes into renovations beforehand.
3) If you were able to ask two questions to the author, what would you ask? Why?
How does previous activity of a business affect it's value, especially if the business has a high potential earning? Potential earnings increase the ventures value, but what if the company hasn't been successful recently?
Are businesses not valued with the inclusion of some of their startup costs? If it costs X dollars to start this new venture, I would hope that some of that was included in the value because it was required to start it in the first place. If that is the case, why is avoiding start-up costs even a part of the valuation process?
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
Nothing that I can tell. This section was a bit more difficult than the last few so my knowledge was limited.
No comments:
Post a Comment