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1. What advantages can an entrepreneur who buys a business gain over one who starts a business from scratch?
2. How would you go about determining the value of the assets of a business if you were unfamiliar with them?
3. Why do so many entrepreneurs run into trouble when they buy an existing business? Outline the steps involved in the right way to buy a business.
4. When evaluating an existing business that is for sale, what areas should an entrepreneur consider? Briefly summarize the key elements of each area.
5. How should a buyer evaluate a business’s goodwill?
6. What is a restrictive covenant? Is it fair to ask the seller of a travel agency located in a small town to sign a restrictive covenant for 1 year covering a 20-square-mile area? Explain.
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