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When Discussing the Purchase of an Existing Business, It Is

question 85

True/False

When discussing the purchase of an existing business, it is not necessary to get verbal understandings in writing from the seller.


Definitions:

Equilibrium Level

The state at which market supply and demand balance each other, and, as a result, prices become stable.

Surplus

A situation in which the quantity of a good or service available exceeds the quantity demanded at the current price.

Loanable Funds

The total resources or funds available for borrowing in the financial markets, used for investments and other purposes.

Interest Rate

The cost of borrowing money or the return for investing, typically expressed as a percentage of the principal amount per annum.

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