Podcast
Questions and Answers
What is goodwill in accounting terms?
What is goodwill in accounting terms?
- All intangible assets that go into the purchase price of a business (correct)
- Only financial assets of a business
- Tangible assets of a business
- All physical assets of a business
What is an essential factor to evaluate when weighing the value of goodwill?
What is an essential factor to evaluate when weighing the value of goodwill?
- The number of active patients
- The seller's true attitude toward the buyer (correct)
- The last fee increase
- The seller's age and competence
When evaluating a practice, what is the recommended time period for examining financial records?
When evaluating a practice, what is the recommended time period for examining financial records?
- At least 1 year
- At least 3 years (correct)
- At least 2 years
- At least 5 years
What is the definition of an active patient?
What is the definition of an active patient?
Why is it important to evaluate the relationship between gross and net practice income?
Why is it important to evaluate the relationship between gross and net practice income?
What is a potential consequence of suddenly increasing fees upon assuming ownership control?
What is a potential consequence of suddenly increasing fees upon assuming ownership control?
What is a key factor to consider when evaluating the desirability of an office location?
What is a key factor to consider when evaluating the desirability of an office location?
What is a potential benefit of purchasing a practice that has been idle for some time?
What is a potential benefit of purchasing a practice that has been idle for some time?
What is a factor that can impact the value of goodwill in a practice?
What is a factor that can impact the value of goodwill in a practice?
What is a key consideration when evaluating a practice's productivity?
What is a key consideration when evaluating a practice's productivity?
Why is it important to evaluate the recall system in a practice?
Why is it important to evaluate the recall system in a practice?
What is a key benefit of the selling dentist introducing the buyer to referring dentists?
What is a key benefit of the selling dentist introducing the buyer to referring dentists?
What is a potential advantage of purchasing an existing practice?
What is a potential advantage of purchasing an existing practice?
What is a factor that may lead to a practice being sold?
What is a factor that may lead to a practice being sold?
What is an important aspect to evaluate when purchasing an existing practice?
What is an important aspect to evaluate when purchasing an existing practice?
What is referred to as the intangible assets relevant to the practice?
What is referred to as the intangible assets relevant to the practice?
Why does it take 5 years to establish a practice from being a fresh graduate?
Why does it take 5 years to establish a practice from being a fresh graduate?
What is a negotiable item when purchasing an existing practice?
What is a negotiable item when purchasing an existing practice?
Which type of practice may involve locations in multiple areas?
Which type of practice may involve locations in multiple areas?
What type of practice arrangement involves an individual working part-time in a practice?
What type of practice arrangement involves an individual working part-time in a practice?
In an employer-employee relationship, who is responsible for the practice's operations?
In an employer-employee relationship, who is responsible for the practice's operations?
Who benefits from a company's success in the form of increased stock valuation or profits distributed as dividends?
Who benefits from a company's success in the form of increased stock valuation or profits distributed as dividends?
What type of practice is characterized by its historical significance and legacy?
What type of practice is characterized by its historical significance and legacy?
Which type of contract is essential for outlining the responsibilities and expectations of a rental or lease agreement?
Which type of contract is essential for outlining the responsibilities and expectations of a rental or lease agreement?
What type of practice involves more than one location and can be beneficial due to increased patient access and convenience?
What type of practice involves more than one location and can be beneficial due to increased patient access and convenience?
Which type of practice usually operates during limited hours and offers dentists the opportunity to balance work with other commitments?
Which type of practice usually operates during limited hours and offers dentists the opportunity to balance work with other commitments?
What type of practice involves a scenario where a dentist works under the supervision and direction of another dentist, often in exchange for a steady salary?
What type of practice involves a scenario where a dentist works under the supervision and direction of another dentist, often in exchange for a steady salary?
For dentists desiring ownership arrangements in the future without an initial financial investment, which practice arrangement may be most suitable?
For dentists desiring ownership arrangements in the future without an initial financial investment, which practice arrangement may be most suitable?
What type of practice may involve working in multiple dental offices, which can offer varied clinical experiences and opportunities for skill development?
What type of practice may involve working in multiple dental offices, which can offer varied clinical experiences and opportunities for skill development?
In a ______________, the owner sells a share of the business to the buyer, who becomes a partner or shareholder.
In a ______________, the owner sells a share of the business to the buyer, who becomes a partner or shareholder.
What are the key concerns that should be addressed in addition to the purchase price of a practice?
What are the key concerns that should be addressed in addition to the purchase price of a practice?
What is a significant advantage of purchasing an existing practice over starting a new one?
What is a significant advantage of purchasing an existing practice over starting a new one?
What are the three major groups of information that must be evaluated when purchasing an existing practice?
What are the three major groups of information that must be evaluated when purchasing an existing practice?
What is the primary benefit of having a record of a successful practice when purchasing an existing one?
What is the primary benefit of having a record of a successful practice when purchasing an existing one?
Why is it important for a dentist to evaluate the internal management factors of a practice before purchasing?
Why is it important for a dentist to evaluate the internal management factors of a practice before purchasing?
What is the typical timeframe for a dentist to establish a practice from being a fresh graduate?
What is the typical timeframe for a dentist to establish a practice from being a fresh graduate?
What is the primary reason a dentist may choose to purchase an existing practice over starting a new one?
What is the primary reason a dentist may choose to purchase an existing practice over starting a new one?
What is the key benefit of goodwill in a practice?
What is the key benefit of goodwill in a practice?
Why is it essential to evaluate the leasehold improvements when purchasing a practice?
Why is it essential to evaluate the leasehold improvements when purchasing a practice?
What is the primary advantage of having an existing patient base when purchasing a practice?
What is the primary advantage of having an existing patient base when purchasing a practice?
