All of the Following Are Major Advantages of Buying an Existing

question 39

Multiple Choice

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

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

---

Definitions:

Cost Function

A mathematical relation that defines the total cost of production as a function of the quantity of output produced.

Profit-Maximizing

The procedure companies undertake to find the best combination of price and production volume for peak profit.

Output

The quantity of goods or services produced by a company, industry, or economic system.

Housing Development

A planned residential community, often including various amenities, constructed by developers and divided into individual properties for sale.