Which of the Following Is a Potential Disadvantage of Purchasing

question 3

Multiple Choice

Which of the following is a potential disadvantage of purchasing an existing business?

• A)The employees inherited with the business may not be suitable.
• B)The previous owner may have created ill will among the company's customers.
• C)Equipment and facilities may be obsolete or inefficient.
• D)All of the above

---

Definitions:

Exclusive Provider

A sole supplier of a particular product or service within a specific market or arrangement.

Unconscionable

Refers to actions or terms in a contract that are so unjust or overwhelmingly one-sided in favor of the party with more power that they are contrary to good conscience.

Market Price

The current price at which an asset or service can be bought or sold in a public market.

Output Contract

An agreement where one party commits to sell, and the other to buy, all of a particular producer's output, ensuring a market for the seller and supply for the buyer.