Evaluate the Differences Between Starting a New Business from Scratch

question 111

Essay

Evaluate the differences between starting a new business from scratch and buying an existing business.

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.

Stock Split

An increase in a firm’s shares outstanding without any change in owner’s equity.

Retained Earnings

Profit that is not distributed to the shareholders but is kept by the company for future investment or to pay off debt.