The Buyer of an Existing Business Typically Acquires Its Personnel

question 78

True/False

The buyer of an existing business typically acquires its personnel, inventories, physical facilities, established banking connections, and ongoing relationships with trade suppliers and customers.

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Definitions:

Operating Loss

A situation where a company's operating expenses exceed its gross profits or revenues, indicating that it is not making money from its core operations.

Year 2

Commonly refers to the second year of operation or existence in various contexts, such as financial reporting or the lifespan of an asset.

Variable Costing

A method of costing that includes only variable costs - costs that change with the level of output - in the cost of goods sold and treats fixed overhead costs as period expenses.

For The Month

A phrase typically used to specify financial or operational activities or measurements within a specific month.