Shani Cassells

Shani Cassells - Shani Cassells Fundamentals of Managing...

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Shani Cassells Fundamentals of Managing Small Businesses Homework Week # 3 September 22, 2011 Chapter 5 Questions 2. How would you go about determining the value of the assets of a business if you were unfamiliar with them? To go about determining the value of the assets of a business if I was unfamiliar with them, I would ask myself several questions. Example of questions would be: Are the assets really useful or are they obsolete? Will the assets require replacement soon? Do the assets operate efficiently? Are the assets reasonably priced? Also, I would check the condition of the building, equipment, plumbing, electrical, and heating and cooling systems. I would also check out the condition of the company’s inventory and find out the value of the inventory. 11. Explain the buyer’s position in a typical negotiation for a business. Explain the seller’s position. What tips would you offer a buyer about to begin negotiating the purchase of a business? The buyer’s position in a typical negotiation for a business is that they have to get the business at the lowest price possible, negotiate favorable payment terms, get assurances that they are buying the business that they think it is, and avoid enabling the seller to open a competing business and to minimize the amount of cash paid up front.
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This note was uploaded on 01/19/2012 for the course N.A N./A taught by Professor N/a during the Spring '11 term at UPenn.

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Shani Cassells - Shani Cassells Fundamentals of Managing...

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