One Advantage of Buying an Existing Business Is

question 107

Multiple Choice

One advantage of buying an existing business is:

• A)you always get the best location.
• B)the opportunity to participate in a national advertising campaign.
• C)equipment is installed and production capacity is known.
• D)easy implementation of innovations and changes from past policies.

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Definitions:

Expected Monetary Values

A financial analysis method used to anticipate the potential financial results by assessing the varied possible outcomes and the likelihood of each occurring, considering their impact on overall financial performance.

Expected Value

The anticipated value of a variable, computed as an average of all possible values weighted by their probabilities.

Expected Monetary Value

A calculation used in decision-making to determine the average outcome when the future includes scenarios that may or may not happen.

Analytic Decision Making

The process of making choices by systematically analyzing information, evaluating alternatives, and basing decisions on rational evidence.