Purchases of Existing Businesses May Occur Through _____ in Which

question 51

Multiple Choice

Purchases of existing businesses may occur through _____ in which the business is bought over a period of time with money earned from the business.

• A)turnkey
• B)cash purchases
• C)earn-outs
• D)leveraged buyouts

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Definitions:

Inefficiently High Quality

A form of inefficiency in which sellers offer high-quality goods at a high price even though buyers would prefer a lower quality at a lower price; often the result of a price floor.

Government Imposes

Actions undertaken by a government to enforce regulations, taxes, or penalties on individuals or organizations.

Binding Price Floor

A price floor set above the equilibrium price, causing a surplus because the quantity supplied exceeds the quantity demanded.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time frame.