COPYRIGHTED MATERIAL
LET’S PRACTICE
Name: _____________________________________________________________________________
5. Blah, blah, blah… Linda keeps hearing small business owners talk about “CRM”, “HRM” and “IT” . What do those mean? Explain what they are. _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 6. Linda and Melinda realize that they don’t have to actually start a business. There’s a toy store for sale right in their neighborhood! What are the advantages of buying an ongoing business ? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 7. Linda and Melinda spend a couple of hours poking around the toy store and talking to the owner. They decide they will buy it. You strongly advise them to wait and do a thorough due diligence before going through with the sale. They have no idea what you mean by that. Explain what due diligence is and why it is important. _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 8. You recommend that Linda and Melinda get some help with the due diligence process, specifically a lawyer and an accountant . Why? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 9. Linda and Melinda buy the toy store and rename it Toyz 2 Teach Tots Stuff. With regard to their business name , what must Linda and Melinda register with the state? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 10. Linda and Melinda must apply to the Social Security Administration for an important number which will be used by the Internal Revenue Service (IRS) to identify the business for tax purposes . What is that number called? _ ______________________________________________________________________________ _ ______________________________________________________________________________ PRODUCT PREVIEW
THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 231
Made with FlippingBook - Online catalogs