Which of the Following Statements BEST Explains Why an Initial

question 83

Multiple Choice

Which of the following statements BEST explains why an initial purchase price of an existing business could be higher than the immediate up-front costs associated with a startup?

• A)Existing businesses provide less risk than a franchise within a competitive market.
• B)A strategic plan is in place to increase customer satisfaction.
• C)A guaranteed customer base is in place to facilitate taking over the business.
• D)Suppliers, staff, equipment and inventory are in place to facilitate taking over the business.

Estimate the cost of foreign purchases in domestic currency.

Understand the relationship between different global currencies and their conversion rates.

Calculate the cost of international transactions, including taxes and shipping when applicable.

Demonstrate knowledge of international finance terminology.

---

Definitions:

Overload Unit

A component in motor starters that protects motors from damage by interrupting power in case of an overload.

Commercial

Refers to activities related to business, trade, or commerce.

Industrial

Pertaining to production or manufacturing environments, often involving heavy machinery and equipment.