When the buyer is examining the income statements,tax returns,and balance sheets of the business,he/she is seeking an answer to the basic question:
A)Is the business financially sound?
B)Why does the owner want to sell?
C)What is the physical condition of the business?
D)What legal aspects should be considered?

Question

Quizplus · Accepted Answer

Examining the income statements, tax returns, and balance sheets is a way for the buyer to determine the financial health of the business. The buyer wants to know if the business is generating enough revenue to cover its expenses and make a profit. This information helps the buyer decide if investing in the business is a wise financial decision.

When the Buyer Is Examining the Income Statements,tax Returns,and Balance