Why Must an Entrepreneur Interview the Current Employees of a Business

question 23

Multiple Choice

Why must an entrepreneur interview the current employees of a business before she or he purchases it?

• A) All employee terminations must happen within thirty days of the purchase to be legally valid
• B) The employees are more likely to provide information regarding the business that may be ambiguous or negative
• C) Interviewing the employees shows the seller the entrepreneur is serious about purchasing the business
• D) The employees are able to cross check information the owner provided to identify if he or she is lying to the entrepreneur

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Definitions:

Payroll Tax

Levies placed on either employees or employers, often determined as a percentage of the wages that staff receive from employers.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Government Transfer Expenditure

Government spending on programs that provide benefits to individuals or families without requiring direct payment or labor in return, such as social security or unemployment benefits.

Social Security Program

A government program designed to provide financial support to individuals during retirement, disability, or other conditions that affect income.