Question

Lois is selling her needlework shop to Simon. Simon is also purchasing the name of the business from Lois, all of the fixtures, and the inventory. Lois is essentially handing over the entire business, from top to bottom, to Simon, who is planning continuing what she had started. What are the essential elements of this business opportunity sale? A Bill of Sale
A. A Bill of Sale
B. Financial Statements
C. Goodwill
D. Both A and B

Answer 1

Answer:

The correct answer is letter "D": Both A and B.

Explanation:

A Bill of Sale is a financial document provided to an individual who is being transferred the title of proprietorship over certain assets that must be listed in the document. The Financial Statements of an organization are the results of a company's performance during a certain period that allow investors to determine how healthy the organization is and determines if the firm is meeting its objectives or not.

As Lois is transferring her business to Simon including all the operations inherent, she must provide Simon a Bill of Sale for the transfer of the business assets and the Financial Statements so Simon can verify how Lois's organization performed during the last period.

Answer 2

Answer:

D. Both A and B

That is bill of sale and financial statements.

Explanation:

Bill of sale is a document that is used to transfer ownership of goods and services to another person.

Financial statement shows activity and a business's financial position at a given point in time.

When selling the business to Simon, Lois will provide him the financial statements and bill of sale.