An Advantage to Buying an On-Going Business Is

question 25

Multiple Choice

An advantage to buying an on-going business is

• A)reduced concern over future operations.
• B)time and effort are reduced
• C)it may be purchased at a bargain price.
• D)all of the above.

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Definitions:

Operating Departments

Sections or divisions within a business that are responsible for carrying out its core operations, as opposed to support or administrative departments.

Direct Method

A way of preparing a cash flow statement where actual cash flows from operating activities are listed directly.

Service Department Costs

Expenses associated with departments that do not directly produce goods but provide support services, such as maintenance or security.

Operating Departments

Units or sectors within a business that are directly involved in performing the main function or activity of the organization.