In the Context of Buying a Business, a Known Commodity

question 42

Multiple Choice

In the context of buying a business, a known commodity may command a higher price for which of the following reasons?

• A)Historical projections have intrinsic value.
• B)Avoiding start-up costs has value.
• C)Property values are variable.
• D)The value of a founder's stock decreases over time.

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Definitions:

Marketing Mix Investments

Allocation of resources across the marketing mix elements—product, price, place, and promotion—to achieve marketing objectives.

Brand Heritage

Describes the legacy and history of a brand, contributing to its identity and consumer perception.

Brand Equity

The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.

Consumers

Individuals or groups who purchase goods or services for personal use and not for manufacturing or resale.