A business with a sales price of $1 million would be referred to as?

A business with a sales price of $1 million would be referred to as?

• A. a business opportunity.
• B. a business enterprise.
• C. a going concern.
• D. goodwill.

Answer: (B)

A sales price of $1 million suggests that the business is likely a substantial operation with tangible assets, contracts, and potentially a customer base, setting it apart from smaller ventures. Referring to this situation as a business enterprise is appropriate because the term encompasses the entirety of a business operation, including its assets, liabilities, and ongoing activities. A business enterprise typically indicates a more established entity that may have a significant market presence or operational history. In contrast, while "business opportunity" might refer to the potential to make profits from the business, it doesn't necessarily convey the size or scope implied by a $1 million sales price. The term "going concern" refers to a business that is operating and not expected to cease operations in the foreseeable future but does not describe the value of the business itself. Similarly, "goodwill" pertains to the intangible asset representing the value of a business’s reputation or customer relationships, but it does not encompass the entire business. Thus, referring to the business as a business enterprise is most accurate given the context.

A sales price of $1 million suggests that the business is likely a substantial operation with tangible assets, contracts, and potentially a customer base, setting it apart from smaller ventures. Referring to this situation as a business enterprise is appropriate because the term encompasses the entirety of a business operation, including its assets, liabilities, and ongoing activities.

A business enterprise typically indicates a more established entity that may have a significant market presence or operational history. In contrast, while "business opportunity" might refer to the potential to make profits from the business, it doesn't necessarily convey the size or scope implied by a $1 million sales price. The term "going concern" refers to a business that is operating and not expected to cease operations in the foreseeable future but does not describe the value of the business itself. Similarly, "goodwill" pertains to the intangible asset representing the value of a business’s reputation or customer relationships, but it does not encompass the entire business. Thus, referring to the business as a business enterprise is most accurate given the context.