AContrast the Advantages and Disadvantages of Starting a New Business

question 68

Essay

a.Contrast the advantages and disadvantages of starting a new business versus buying an existing retail business.
b.Explain how a prospective purchaser should assess the value of goodwill.

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Definitions:

Profit Margin

A measure of profitability that indicates the percentage of revenue that exceeds the costs of goods sold.

Statement of Intentions

A document that outlines the intentions or objectives of an individual or entity, often related to future plans or actions.

Strategic Planning

The process of defining an organization's strategy or direction and making decisions on allocating its resources to pursue this strategy.

Intermediate Planning

The process of setting goals and outlining strategies for a middle-range time frame, typically covering 1 to 3 years.