Short and Shearer Are Two Friends Who Want to Begin

question 69

Multiple Choice

Short and Shearer are two friends who want to begin an entrepreneurship as business partners. They need to decide whether to start up a new business or to buy an existing business. To do this, Short and Shearer need to weigh the pros and cons of each in order to see what the best strategy for them would be. Which of the following, if true, would strengthen the case for Short and Shearer buying an existing business?

• A) Short and Shearer have a lot of ideas as to the kind of business they would like to own.
• B) An existing business would have an existing customer base that Short and Shearer would inherit.
• C) An existing business for sale might have difficulties that Short and Shearer would inherit.
• D) Short and Shearer greatly value independence.
• E) Existing small businesses are usually carrying debts.

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Definitions:

New Product

An item or service recently developed or introduced to the market, offering new value to consumers.

Breakthrough

Refers to a significant and sudden advance or discovery that opens up new possibilities in a field of study, technology, or industry.

Continuous

An ongoing, uninterrupted process, action, or flow that does not have a clear beginning or end.

Product

Any item or service that is created through a process and is offered to the market to satisfy a need or want.