All of the Following Are Major Advantages of Buying an Existing

question 19

Multiple Choice

All of the following are major advantages of buying an existing business over starting a new business EXCEPT

• A)obtaining financing is often easier.
• B)less risk is involved.
• C)product or service is not known in the marketplace.
• D)existing suppliers and employees are in place.

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Definitions:

Operating Profit

Operating profit is the income earned from a company's core business operations, excluding deductions of interest and taxes.

Markdown Rate

The percentage reduction from the original price of an item to its sale price.

Mark-up

Surcharging the cost price of commodities to envelop overheads and assure profits.

Springtime Shipment

Scheduled transportation of goods during the spring season, implying a specific timing for shipping operations.