Which of the Following Is NOT an Advantage of Buying

question 92

Multiple Choice

Which of the following is NOT an advantage of buying an existing business?

• A) It is simpler than beginning a new business from scratch.
• B) There is a reduction in start-up time and energy.
• C) An existing business has less competition.
• D) An existing business has an existing customer base.
• E) It might be easier to obtain financing to purchase the existing business.

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Definitions:

Insanity Ruling

A legal determination that a person was not responsible for their criminal actions at the time of the offense due to mental illness, affecting their capacity to understand right from wrong.

Operation of Law

Changes in legal rights or obligations that occur automatically due to established laws, rather than through the actions of individuals.

Partnership Dissolution

Partnership Dissolution is the legal process of ending a partnership agreement, thereby dissolving the relationship between the partners and settling the partnership's debts and assets.

Limited Partnership

a type of partnership comprising both general partners, who manage the business and are personally liable for debts, and limited partners, who invest but have limited liability.