Bulk Transfer Law Quiz

Bulk Transfer Law

• Protects buyers from assuming debts of a business they purchase.
• Seller must provide a list of all creditors to the buyer.
• Buyer and seller are required to itemize all property included in the sale.
• Buyer must retain this creditor list for six months.
• Written notification to each creditor is mandatory at least ten days before taking possession or making payment.

Restrictive Covenant

• Also known as a non-compete agreement, it restricts a seller from competing with the buyer in a specified time frame and geographic area.

Due Diligence Process

• A thorough investigation of a business for sale to uncover strengths, weaknesses, opportunities, and threats (SWOT analysis).

Acquisition Process Steps

• Identify potential business candidates.
• Sign a disclosure statement.
• Prepare and review a letter of intent.
• Conduct the buyer’s due diligence investigation.
• Draft and negotiate the purchase agreement.
• Initiate the transition phase post-acquisition.

Assessing Financial Soundness

• Review income statements and balance sheets from the past 3-5 years.
• Analyze income tax returns and cash flow.
• Evaluate owner's compensation, including relatives.

Writing a Business Plan

• Create a clear vision and mind map; conduct SWOT analysis.
• Develop three strategic initiatives and execute a force field analysis.
• Confirm business feasibility, consider target audience, and maintain a professional presentation.

Business Plan Components

• Essential sections: Cover Page, Executive Summary, Market Analysis, Products/Services, Marketing Plan, Operations Plan, Management Team, Financial Plan, and more.

Marketing Plan Essentials

• Summarize the marketing strategy and utilize the marketing mix.
• Outline objectives, action plans with budgets, and evaluate strategies regularly.

E-Commerce Features

• Mass customization and personalization based on customer needs and preferences.
• Online availability of services 24/7 and extended distribution channels.
• Focus on reduced transaction costs in reaching customers.

Mobile Commerce (M-Commerce)

• Encompasses business transactions conducted via mobile devices.
• Involves purchasing goods, services, and payment processing through mobile platforms.

Advantages of M-Commerce

• Enhances customer satisfaction, offers cost savings, and opens new business opportunities.

Financial Statements for Small Businesses

• Critical to review monthly financial records, including income statements and balance sheets.
• Monitor accounts receivable/payable and payroll commitments.

Ratio Analysis

• Calculates and compares critical financial ratios.
• Liquidity Ratios are vital; includes current ratio and quick ratio measures of asset liquidity.

Hiring and Human Resource Management

• Critical task for small business success, particularly in service sectors.
• Personal interviews are crucial for candidate assessment.

Employee Evaluation in Hiring

• Assess candidates for attitude, skills, communication ability, and overall fit for the role.

Job Analysis

• Gathers comprehensive information on job roles including descriptions and specifications.
• Serves as the foundation for all HR-related activities.