Which of the Following Reasons for Why an Existing Business

question 28

Multiple Choice

Which of the following reasons for why an existing business is up for sale should concern you?

• A) The owner wants to retire.
• B) The owner is ill and cannot handle the responsibilities.
• C) The owner wishes to pursue other interests.
• D) The owner cannot raise adequate financing.

---

Definitions:

Total Money Supply

The entire stock of currency and other liquid instruments circulating in a country's economy as of a particular time.

Money Supply

The overall accumulation of monetary assets in an economy at a certain point, including cash, coins, and funds in checking and savings accounts.

Reserves

Assets held by a financial institution or an individual as a buffer for potential future liabilities or emergencies.

Leverage

The use of borrowed money to supplement existing funds for purposes of investment.