If Sarah Were to Buy an Existing Business,which of the Following

question 36

Multiple Choice

If Sarah were to buy an existing business,which of the following disadvantages would you point out?

• A) Difficulty in determining the worth of the business.
• B) Possibility of established customers leaving due to change.
• C) Need for establish production processes.
• D) Buying a business being more expensive than starting one.

Calculate the Net Present Value (NPV) of investment opportunities accounting for inflation and risk.

Assess the cost of capital for firms, including the influence of debt and equity.

Identify financial decision-making criteria for consumers and businesses.

Application of financial concepts to real-world scenarios, including personal and business cases.

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Definitions:

Increased Temperature

A rise in the average temperature of the Earth's atmosphere and oceans, often associated with global warming and climate change.

Renewable Energy

Energy derived from natural processes that are replenished at a faster rate than they are consumed, such as solar, wind, and hydroelectric power.

Climate Change

Long-term alterations in temperature, precipitation, and other climatic factors on Earth, often as a result of human activities like burning fossil fuels, leading to global warming and shifting weather patterns.

Ozone Depletion

The reduction of the ozone layer in the earth's stratosphere, primarily caused by human-made chemicals, leading to increased ultraviolet radiation reaching the Earth's surface.