Identify an Accurate Statement About Buying an Existing Business

question 41

Multiple Choice

Identify an accurate statement about buying an existing business.

• A)Buying an existing business does not take as much planning and thought as starting a business from scratch.
• B)An entrepreneur has to discover the sources of cash flow after buying an existing business because there is no established cash flow.
• C)An existing business has the benefit of having an established set of processes.
• D)There is no difference in the risk of buying a franchise compared to starting a business from nothing but an idea.

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Definitions:

Normative

pertaining to norms, standards, or what is considered typical, ideal, or should be the case, often within a moral or ethical context.

Informative

Intended to provide new knowledge or data to the audience, often utilized in educational and professional contexts.

Informative

Intended to provide information or knowledge to the audience without necessarily aiming to persuade.

Goodwill

The intangible asset that arises as a result of the acquisition of one company by another for a premium value.