When Buying an Existing Business,the Prospective Buyer Should Ask Questions

question 13

Multiple Choice

When buying an existing business,the prospective buyer should ask questions about the operation of the business.Which of the following would be an INAPPROPRIATE question to ask?

• A) Why are you selling?
• B) Are there any problems with the business?
• C) Is the business operating at a profit?
• D) What are you going to do with the down payment?

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Definitions:

Objective Function

A mathematical function used in optimization to represent the goal that needs to be achieved, often minimizing or maximizing some quantity.

Linear Programming

A mathematical method for determining the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships.

Objective Function

A mathematical function used in decision-making processes, often in optimization, representing the goal that needs to be achieved.

Constraints

Restrictions or limitations in decision-making processes or in the optimization of systems, such as resource limits or production capacities.