Which of the Following Is Considered a Disadvantage of Buying

question 24

Multiple Choice

Which of the following is considered a disadvantage of buying an existing business?

• A) Acquiring a "going concern" with a good past history increases the likelihood of a successful operation for the new owner.
• B) Has an established clientele.
• C) Established relationships with banks, trade creditors, and other sources of financial support.
• D) Present personnel may be unproductive and have a poor track record.

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Definitions:

Waiver

A waiver is the voluntary relinquishment or surrender of some known right or privilege.

Supervening Illegality

A situation where a law change after an agreement is made renders the performance of the contract illegal.

Impossibility

A concept in contract law where unanticipated events make the fulfillment of a contract's terms unfeasible or unable to be completed.

Substitute

An alternative or replacement for something else, particularly in the context of products, goods, or services.