To evaluate a company's earning potential, a buyer should review past income statement and balance sheet items. Sales tax records, income tax returns and financial statements are valuable sources of information. Question 26 options: True False Question 27 (1 point) _______________: a lawsuit which claims that a company is liable for damages and injuries caused by the products or services it sells. Question 27 options: Covenant not to compete (or restrictive covenant) Product liability lawsuit Due-on-sale clause None of the above Question 28 (1 point) _____________ involves studying, reviewing, and verifying all the relevant information concerning an acquisition. Question 28 options: A) due diligence B) business assessment C) skimming D) hidden market Question 29 (1 point) _________________ method, here the value of a company is equal to its net worth - assets minus liabilities. Question 29 options: A) earnings B) market C) multiples D) balance sheet Question 30 (1 point) Net worth (or owner's equity): Net worth = Income ? Liabilities Question 30 options: True False