• Home Main
• BUS116 Home
• Syllabus
• Case Study
  • Case Study
  • SWIF Roadmap
  • Rubric
• Business Plan
• Calendar
• Resources

Overview, Learning Objectives, Class Preparation

CHAPTER 4-Buying an Existing Business

OVERVIEW

Buying an existing business is an option into entrepreneurship chosen by many people. Relative to the alternative of starting a business, buying offers an identifiable set of advantages and disadvantages. The chapter examines these advantages and disadvantages, explains the determinants of price, and then explores negotiations as an aspect of the purchasing process.

LEARNING OBJECTIVES

• Buying an existing business has several important advantages over starting one, including less risk, less time and effort, and the possibility of getting a bargain.
• Finding a business to buy should not be confined to the standard channels where businesses for sale are advertised.
• Determining the value of the business requires taking into account both the assets the company has and the earnings it is likely to achieve in the future.
• In order to negotiate effectively, the entrepreneur must gather as much information about the company and the industry as possible.

Format for Discussion Questions: Typed, (Question in bold) followed by your answer. May be submitted in class paper copy, email, or Blackboard.

READ CHAPTER 4 and answer Discussion Questions 1,3,4,6

Be prepared to discuss your answers in class.

Power Point Slides