To Ensure a Smooth Transition When Buying an Existing Business

question 32

Multiple Choice

To ensure a smooth transition when buying an existing business, a buyer should ________.

• A) communicate with employees to reduce their uncertainty and anxiety
• B) be honest with existing employees about upcoming changes and plans for the company's future
• C) consider asking the seller to stay on and serve as a consultant until the transition is complete
• D) All of the above

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Definitions:

Privately Owned

Owned by private individuals or corporations rather than by the government or public entities, often characterized by private decision-making and profit motivation.

Transaction Costs

Expenses incurred during the process of buying or selling a product or service, typically including taxes, communication charges, and other financial fees.

Transaction Costs

Expenses incurred when buying or selling goods and services, which may include search and information costs, bargaining costs, and enforcement costs.

Voluntary Exchange

A transaction where parties involved trade goods or services by mutual agreement, without coercion.