The Risks of Buying an Existing Firm Are Greater Than

question 125

True/False

The risks of buying an existing firm are greater than the risks of starting a business from scratch because the existing firm may have a bad reputation among consumers.

---

Definitions:

Surplus

An amount of something left over when requirements have been met; in economic terms, this can refer to excess supply over demand in a market, leading to lower prices.

Shortage

A condition where there's more market demand for a product or service than what is supplied.

Equilibrium Price

The rate at which the volume of goods available meets the volume of goods sought.

Surpluses

The amount by which supply exceeds demand, often referring to goods, services or public finances.