From Valuation to Closure: Test Your Expertise in Selling a Business

0 % Selling a Business Welcome to Selling a Small Business Quiz! This quiz will test your knowledge about selling and acquiring a business. Are you ready to put your knowledge to the test? 1 / 14 1. When is the best time to sell a small business? When the market is strong, and revenue and profits are growing When the business is struggling and needs new leadership During a recession when people need work When the seller is ill and can’t manage it properly 2 / 14 2. What are the two types of small business purchases? Cash and Credit Asset and Stock Synergistic and Corporate Revenue and Profit 3 / 14 3. For sellers of an S-Corp, which type of purchase yields more favorable tax treatment? Asset Purchase Stock Purchase Both Neither 4 / 14 4. What are the two classes of small business buyers? Cash and Credit Rich and Poor Synergistic and Financial Revenue and Profit 5 / 14 5. What is the most important factor in determining the value of a small business for a strategic buyer? Revenue Profit Number of employees Synergies 6 / 14 6. What is the most important factor in determining the value of a small business for a financial buyer? Revenue Profit Number of employees Location 7 / 14 7. How long does it typically take to sell a small business? A few days A few weeks A few months A few years 8 / 14 8. What is a common mistake business owners make when selling their business? Not preparing the business for sale Overvaluing the business Not disclosing important information All of the above 9 / 14 9. What is an earnout agreement? A contingent payment that the seller only receives from the buyer when specific performance targets are met An agreement to pay the seller a series of fixed payments for an agreed-upon number of years An agreement to pay the seller a portion of the profits for a set period None of the above 10 / 14 10. What is the purpose of a letter of intent when selling a small business? To outline the terms of the buyer’s offer To legally transfer ownership To provide financing for the buyer To outline the terms the seller is willing to accept 11 / 14 11. What is a due diligence period? The period during which the buyer reviews the financial and legal records of the business The period during which the seller reviews the buyer’s purchasing plan The period during which the seller prepares the business for sale None of the above 12 / 14 12. What is the best way to determine the potential sale price of a small business? Look at the last three years’ revenue and multiply by three Looking that companies balance sheet to determine its book value Hiring a professional business appraiser Ask your CPA to compute it 13 / 14 13. What is a common way to market a small business for sale? Word of mouth Newspaper ads Online business-for-sale listings None of the above 14 / 14 14. When marketing a small business, in what circumstances should a seller include an asking price? Every time Only when the business includes real estate Sellers prove value, and buyers determine the price When the business has employees Your score is The average score is 71% LinkedIn Facebook Twitter VKontakte 0% Restart quiz div#ays-quiz-container-11 * { box-sizing: border-box; } /* Styles for Internet Explorer start */ #ays-quiz-container-11 #ays_finish_quiz_11 { } /* Styles for Quiz container */ #ays-quiz-container-11{ min-height: 450px; width:800px; background-color:#2c2c2c; background-position:center center;background-image: url('https://stevebizblog.com/wp-content/uploads/2023/04/background-300x166.jpg');border-radius:0px;box-shadow: 0px 0px 15px 1px rgba(0,0,0,0.4);border: none;} /* Styles for questions */ #ays-quiz-container-11 #ays_finish_quiz_11 div.step { min-height: 450px; } /* Styles for text inside quiz container */ #ays-quiz-container-11 .ays-start-page *:not(input), #ays-quiz-container-11 .ays_question_hint, #ays-quiz-container-11 label[for^="ays-answer-"], #ays-quiz-container-11 #ays_finish_quiz_11 p, #ays-quiz-container-11 #ays_finish_quiz_11 .ays-fs-title, #ays-quiz-container-11 .ays-fs-subtitle, #ays-quiz-container-11 .logged_in_message, #ays-quiz-container-11 .ays_score_message, #ays-quiz-container-11 .ays_message{ color: #ffffff; outline: none; } #ays-quiz-container-11 .ays-quiz-password-message-box, #ays-quiz-container-11 .ays-quiz-question-note-message-box, #ays-quiz-container-11 .ays_quiz_question, #ays-quiz-container-11 .ays_quiz_question *:not([class^='enlighter']) { color: #ffffff; } #ays-quiz-container-11 textarea, #ays-quiz-container-11 input::first-letter, #ays-quiz-container-11 select::first-letter, #ays-quiz-container-11 option::first-letter { color: initial !important; } #ays-quiz-container-11 p::first-letter:not(.ays_no_questions_message) { color: #ffffff !important; background-color: transparent !important; font-size: inherit !important; font-weight: inherit !important; float: none !important; line-height: inherit !important; margin: 0 !important; padding: 0 !important; } #ays-quiz-container-11 .select2-container, #ays-quiz-container-11 .ays-field * { font-size: 15px !important; } #ays-quiz-container-11 .ays_quiz_question p { font-size: 16px; } #ays-quiz-container-11 .ays-fs-subtitle p { text-align: left ; } #ays-quiz-container-11 .ays_quiz_question { text-align: left ; margin-bottom: 10px; } #ays-quiz-container-11 .ays_quiz_question pre { max-width: 100%; white-space: break-spaces; } #ays-quiz-container-11 .ays-quiz-timer p { font-size: 16px; } #ays-quiz-container-11 section.ays_quiz_redirection_timer_container hr, #ays-quiz-container-11 section.ays_quiz_timer_container hr { margin: 0; } #ays-quiz-container-11 section.ays_quiz_timer_container.ays_quiz_timer_red_warning .ays-quiz-timer { color: red; } #ays-quiz-container-11 .ays_thank_you_fs p { text-align: center; } #ays-quiz-container-11 input[type='button'], #ays-quiz-container-11 input[type='submit'] { color: #ffffff !important; outline: none; } #ays-quiz-container-11 .information_form input[type='text'], #ays-quiz-container-11 .information_form input[type='url'], #ays-quiz-container-11 .information_form input[type='number'], #ays-quiz-container-11 .information_form input[type='email'], #ays-quiz-container-11 .information_form input[type='checkbox'], #ays-quiz-container-11 .information_form input[type='tel'], #ays-quiz-container-11 .information_form textarea, #ays-quiz-container-11 .information_form select, #ays-quiz-container-11 .information_form option { color: initial !important; outline: none; background-image: unset; } #ays-quiz-container-11 .wrong_answer_text{ color:#ff4d4d; } #ays-quiz-container-11 .right_answer_text{ color:#33cc33; } #ays-quiz-container-11 .wrong_answer_text p { font-size:16px; } #ays-quiz-container-11 .ays_questtion_explanation p { font-size:16px; } #ays-quiz-container-11 .right_answer_text p { font-size:16px; } #ays-quiz-container-11 .ays-quiz-question-note-message-box p { font-size:14px; } #ays-quiz-container-11 .ays_cb_and_a, #ays-quiz-container-11 .ays_cb_and_a * { color: rgb(255,255,255); text-align: center; } /* Quiz textarea height */ #ays-quiz-container-11 textarea { height: 100px; min-height: 100px; } /* Quiz rate and passed users count */ #ays-quiz-container-11 .ays_quizn_ancnoxneri_qanak, #ays-quiz-container-11 .ays_quiz_rete_avg { color:#2c2c2c !important; background-color:#ffffff; } #ays-quiz-container-11 .ays-questions-container > .ays_quizn_ancnoxneri_qanak { padding: 5px 20px; } #ays-quiz-container-11 div.for_quiz_rate.ui.star.rating .icon { color: rgba(255,255,255,0.35); } #ays-quiz-container-11 .ays_quiz_rete_avg div.for_quiz_rate_avg.ui.star.rating .icon { color: rgba(44,44,44,0.5); } #ays-quiz-container-11 .ays_quiz_rete .ays-quiz-rate-link-box .ays-quiz-rate-link { color: #ffffff; } /* Loaders */ #ays-quiz-container-11 div.lds-spinner, #ays-quiz-container-11 div.lds-spinner2 { color: #ffffff; } #ays-quiz-container-11 div.lds-spinner div:after, #ays-quiz-container-11 div.lds-spinner2 div:after { background-color: #ffffff; } #ays-quiz-container-11 .lds-circle, #ays-quiz-container-11 .lds-facebook div, #ays-quiz-container-11 .lds-ellipsis div{ background: #ffffff; } #ays-quiz-container-11 .lds-ripple div{ border-color: #ffffff; } #ays-quiz-container-11 .lds-dual-ring::after, #ays-quiz-container-11 .lds-hourglass::after{ border-color: #ffffff transparent #ffffff transparent; } /* Stars */ #ays-quiz-container-11 .ui.rating .icon, #ays-quiz-container-11 .ui.rating .icon:before { font-family: Rating !important; } /* Progress bars */ #ays-quiz-container-11 #ays_finish_quiz_11 .ays-progress { border-color: rgba(255,255,255,0.8); } #ays-quiz-container-11 #ays_finish_quiz_11 .ays-progress-bg { background-color: rgba(255,255,255,0.3); } #ays-quiz-container-11 . { background-color: #1e73be; } #ays-quiz-container-11 . { background-color: #ffffff; } #ays-quiz-container-11 .ays-progress-value { color: #ffffff; text-align: center; } #ays-quiz-container-11 .ays-progress-bar { background-color: #1e73be; } #ays-quiz-container-11 .ays-question-counter .ays-live-bar-wrap { direction:ltr !important; } #ays-quiz-container-11 .ays-live-bar-fill{ color: #ffffff; border-bottom: 2px solid rgba(255,255,255,0.8); text-shadow: 0px 0px 5px #2c2c2c; } #ays-quiz-container-11 .ays-live-bar-fill.ays-live-fourth, #ays-quiz-container-11 .ays-live-bar-fill.ays-live-third, #ays-quiz-container-11 .ays-live-bar-fill.ays-live-second { text-shadow: unset; } #ays-quiz-container-11 .ays-live-bar-percent{ display:none; } #ays-quiz-container-11 #ays_finish_quiz_11 .ays_average { text-align: center; } /* Music, Sound */ #ays-quiz-container-11 .ays_music_sound { color:rgb(255,255,255); } /* Dropdown questions scroll bar */ #ays-quiz-container-11 blockquote { border-left-color: #ffffff !important; } /* Quiz Password */ #ays-quiz-