Before Buying a Business,one Should Engage in a Thorough Analysis

question 96

Multiple Choice

Before buying a business,one should engage in a thorough analysis of the firm's financial statement to see if any of them may be misleading.An example of that would be

• A) cutting the labor force temporarily to reduce expense and improve profits.
• B) maintenance of equipment has been reduced to cut short term expense.
• C) insufficient write-offs of bad debts.
• D) all of the above.

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Definitions:

Security Risks

Potential threats that could compromise the confidentiality, integrity, or availability of information or assets.

Filing System

An organized method of storing documents, records, or data in a way that makes retrieval easy and efficient.

Exact Spelling

The accurate arrangement and sequence of letters in a word.

Indexing

The method of organizing data, literature, or information to facilitate easy retrieval, often seen in libraries, databases, and various information systems.