Jim Short and Ron Tall Are Trying to Decide Whether

question 93

Multiple Choice

Jim Short and Ron Tall are trying to decide whether to start a new business or buy an existing one.Which of the following would strengthen the case for buying an existing business?

• A) The men have lots of ideas regarding the type of business they would like to own.
• B) They would benefit from the customer base of an existing business.
• C) An existing business may have difficulties that they would inherit if they bought it.
• D) Both men value independence.
• E) Existing small businesses usually have a lot of debt.

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Definitions:

Insurance Settlement

The payment made by an insurance company to a claimant, policyholder, or beneficiary under the terms of the insurance policy.

Present Value

The current financial worth of a forthcoming sum of money or sequence of cash flows, with a particular rate of interest in mind.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Invest

The process of distributing funds with the aim of earning revenue or gains.