Short and Shearer Are Two Friends Who Want to Begin

question 192

Short Answer

Short and Shearer are two friends who want to begin an entrepreneurship as business partners. They need to decide whether to start up a new business or to buy an existing business. To do this, Short and Shearer need to weigh the pros and cons of each in order to see what the best strategy for them would be.
Which of the following, if true, would weaken the case for Short and Shearer buying an existing business?
Short and Shearer could more easily obtain financing for the purchase.
Buying an existing business involves fewer legal hurdles than starting a new one.
Franchises have more potential for success than single-facility businesses.
Short and Shearer have limited funds to start with.
Existing businesses cost less to purchase than new ones.

Recognize the importance and components of SWOT analysis in HR planning.

Identify the critical role of strategic human resource management (SHRM) in aligning HR practices with overall business strategy.

Comprehend the use and significance of HR metrics and dashboards in effective HR management.

Distinguish between qualitative and quantitative approaches to demand forecasting in HR.

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Definitions:

LRAC Curve

Long-Run Average Cost Curve, a graphical representation showing the minimum cost at which any output level can be produced in the long run.

Exiting Firms

Businesses that are leaving a particular market due to various reasons such as unprofitability, strategic realignment, or market saturation.

Increasing-Cost Industry

An industry in which production costs increase as the industry's output expands.

Constant-Cost Industry

An industry where the cost of production does not change as the industry's output changes.