A Bargain Price for an Existing Business Is NOT a Good

question 1

Multiple Choice

A bargain price for an existing business is NOT a good deal for the buyer when the

• A) seller intends to open a competing business in the same locality.
• B) business is losing money.
• C) neighborhood is deteriorating.
• D) All of these are correct.

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Definitions:

Profit Margins

A financial metric that measures the percentage of profit a company retains from its total revenue after subtracting the cost of goods sold and other expenses.

Maximum Amounts

Maximum Amounts refer to the highest possible quantities or levels that are permissible or achievable under certain conditions.

Slack

The amount of time a project task can be delayed without causing a delay to subsequent tasks or the entire project.

Profit Margins

The percentage of revenue remaining after all operating expenses, taxes, and costs are paid, indicating the profitability of a company.