Want to Buy a Business ? Reading Answers

May 19, 2025

Want to Buy a Business? Reading Answers is an academic reading answers topic. Want to Buy a Business? Reading Answers has a total of 7 IELTS questions in total. In the question, you have to choose the correct answer in no more than three words for each from the given passage.

The IELTS Reading Section assesses the candidate's skills in understanding and analysing academic and general texts. Practicing with IELTS Reading Practice Questions can help you get accustomed to different question formats in reading tasks, improve your vocabulary, and enhance your critical reading abilities. Additionally, practicing improves vocabulary and strengthens vital reading skills, which are essential for success. To achieve high band scores, it is important to understand the instructions for each question type and develop effective time management strategies.

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Section 1 Want to Buy a Business? - Read On

Buying an established business is a good option for some aspiring entrepreneurs, as much of the groundwork for success may have already been done by the existing owners. Before making an offer, there are some important things to investigate. Initially, it is Likely that you may only have access to a company's business sale memorandum. Sellers will usually ask you to

sign a confidentiality undertaking or non-disclosure agreement before you can access sensitive or detailed information. They will usually also ask for details about you (via a CV) and evidence of your ability to fund a purchase. After an offer is made and agreed on, due diligence is carried out. This is where the buyer looks at the business in detail, including its finances, its employees, outstanding litigation, major contracts, IT and other technology. It may sound complex, but professionals such as accountants, solicitors, chartered surveyors, Business transfer agents, business brokers and corporate financiers can help. You can also do some of the research yourself.

Much of the information you'll want to know about a business you are hoping to buy will be confidential, while some will be publicly available. If a vendor is keen to sell, then they should co-operate fully and give you all of the information you need to arrive at an offer. This may include looking at bank loan details, property rental contracts and intellectual property licences,

for example. It is likely you will be asked to sign a confidentiality agreement (also known as a non-disclosure agreement). This protects the existing business owner and stops you from using any information you have learned about the way the business is run should negotiations break down. Get a solicitor or lawyer to read anything you are asked to sign or check carefully for any clauses that could have a negative impact on any other businesses you own or are considering starting. You may already be looking at developing a product similar to one offered by the business, for example, and the confidentiality agreement may prevent you doing this if the deal falls through. Once a business has been purchased, it is important to respect the Data Protection Act for any information transferred to you under the sale, such as employee records. It is wise to seek expert legal advice or speak to the Information Commissioner's Office.

There are several stages to the official process of buying or selling a business. They start with valuing the business, followed by getting tax advice, market research and marketing, preliminary offers, negotiating terms, heads of agreement, legal sale and purchase agreement, completing due diligence, and finally, completing the sale. Ensure each stage of the negotiation is documented and include all agreements and conditions in the final contract. Do this even if the business is small and the sale straightforward. Take expert advice from an accountant and a solicitor throughout the process, as this will stop you making costly mistakes. You can also seek advice from a tax specialist to ensure that the deal you agree on is tax efficient. Sellers should

decide whether to use a business broker or not to handle the initial part of the process.

When you're setting up your business, it's essential to think about how you'll ultimately end your involvement with it. An exit strategy can help you to maximise the value you get from your business, successfully market your business to potential buyers or investors, and ensure you end your involvement with as little disruption to the business as possible. Regardless of whether your exit occurs to a planned schedule or whether you are forced to make a move for unexpected reasons, the decisions you make when setting up can affect how easy it is for you to eventually exit your business.

Questions 14-20

Write NO MORE THAN THREE WORDS for each.

14. What is the first document that a business buyer will most probably be able to see before signing a non-disclosure agreement?

Answer: BUSINESS SALE MEMORANDUM

Supporting statement: Initially, it is Likely that you may only have access to a company's business sale memorandum.

Keywords: company's, business

Keyword Location: Para 1, Line 4

Explanation: According to the text, the buyer can only see the company's business sale memorandum, and the seller will ask you to sign a confidentiality undertaking or non-disclosure agreement before they provide access to sensitive or detailed information.

15. What process is carried out after an offer to buy a business has been submitted and accepted?

Answer: DUE DILIGENCE

Supporting statement: After an offer is made and agreed on, due diligence is carried out.

Keywords: offer, due diligence

Keyword Location: Para 1, Line 7

Explanation: According to the text, due diligence takes place upon the registration and agreement to an offer to buy a business. The buyer examines every aspect of the company at this point, including its finances, staff, unsettled legal disputes, vital contracts, IT, and other technology.

16. What kind of information is given in the text as an example of information protected by the Data Protection Act?

Answer: EMPLOYEE RECORDS

Supporting statement: it is important to respect the Data Protection Act for any information transferred to you under the sale, such as employee records.

Keywords: Data Protection Act, employee

Keyword Location: Para 2, Line 13

Explanation: According to the text, employee records are the kind of information that is protected by the Data Protection Act.

17. According to the text, what is the first phase of the formal procedure of buying or selling a business?

Answer: VALUING THE BUSINESS

Supporting statement: They start with valuing the business, followed by getting tax advice

Keywords: valuing, tax

Keyword Location: Para 3, Line 2

Explanation: The text mentions that valuing the business is the first formal procedure that is done while buying or selling a business.

18. What does the text say you can avoid by consulting an accountant and solicitor?

Answer: COSTLY MISTAKES

Supporting statement: Take expert advice from an accountant and a solicitor throughout the process, as this will stop you making costly mistakes.

Keywords: advice, costly

Keyword Location: Para 3, Lines 6-7

Explanation: According to the text, costly mistakes can be avoided by taking advice from an accountant and a solicitor while buying or selling a business.

19. It is important to consult with someone specializing in taxation to ensure that your decision is ............

Answer: TAX EFFICIENT

Supporting statement: You can also seek advice from a tax specialist to ensure that the deal you agree on is tax efficient.

Keywords: tax, efficient

Keyword Location: Para 3, Line 8

Explanation: The text states that one should always consult a tax specialist to ensure that the deal you agree on is tax efficient

20. Because by eventually leaving the business you buy might adversely affect it, it's important to plan an ………………..

Answer: EXIT STRATEGY

Supporting statement: An exit strategy can help you to maximize the value you get from your business

Keywords: exit, business

Keyword Location: Para 4, Lines 2-3

Explanation: The text mentions that one should always plan an exit strategy for their business to maximize its value. They should do this while setting up a business, as they might eventually leave that business, whether planned or unplanned.

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