One Way to Get into Business Is to Buy an Existing

question 60

Multiple Choice

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on

• A) the prospects for business competition.
• B) the current owner's retirement plan.
• C) the amount of government contracts the company has.
• D) the value of what the business owns, what it earns, and what makes it unique.

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Definitions:

Punishment

An adverse event or outcome that decreases the likelihood of a behavior being repeated in the future.

Operant Conditioning

Learning resulting from the response an organism receives following a behavior.

Negative Reinforcement

A form of conditioning where a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Law Of Effect

A principle in psychology that behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are less likely to be repeated.