One Disadvantage of Purchasing an Existing Business Is That It

question 18

True/False

One disadvantage of purchasing an existing business is that it requires more cash outlay than creating a start-up.

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Definitions:

Stocking Level

Refers to the quantity of inventory kept on hand by a business to meet demand without incurring stockouts or excessive surplus.

Standardized Parts

are components manufactured to a set specification that can be used interchangeably in various products, reducing costs and simplifying production.

Management Succession

A strategy within an organization for passing leadership roles, including the transition of its senior leaders and the continuity of business operations.

Acute Situation

A critical or urgent condition that requires immediate attention, often implying a sharp or severe onset.