Which of the Following, If True, Would Weaken the Case

question 25

Multiple Choice

Which of the following, if True, would weaken the case for Short and Shearer buying an existing business?

• A) Short and Shearer could more easily obtain financing for the purchase.
• B) Buying an existing business involves fewer legal hurdles than starting a new one.
• C) Franchises have more potential for success than single-facility businesses.
• D) Short and Shearer have limited funds to start with.
• E) Existing businesses cost less to purchase than new ones.

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Definitions:

CFO

Chief Financial Officer, the senior executive responsible for managing the financial actions of a company.

Purely Cash Compensation

Payment made in the form of physical currency or through direct deposit to a bank account, without any non-cash benefits.

Company Takeover

The acquisition of one company by another, where the acquiring company assumes control of the target company.

Proxy Fight

A contest between two or more parties to win control over a company by convincing other shareholders to vote for one side's preferred corporate governance changes.