The First Step an Entrepreneur Should Take When Acquiring an Existing

question 22

Multiple Choice

The first step an entrepreneur should take when acquiring an existing business is to:

• A)explore financing options.
• B)prepare a list of potential candidates.
• C)analyze his/her skills,abilities,and interests in an honest self-audit.
• D)contact existing business owners in the area and ask if their companies are for sale.

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Definitions:

Regression Analysis

A statistical method used to model and analyze the relationship between a dependent variable and one or more independent variables.

Historical Returns

The past performance of an investment, typically calculated as the percentage change in its value over a specific period of time.

Adjusted Beta

A measure that adjusts a stock's historical beta, or volatility in relation to the market, to reflect both the company's current fundamentals and the tendency of a beta to move towards the market average over time.

Covariance

A measure of how two variables change together, which can indicate the degree to which they move in the same or opposite directions.