Which of the Following May Not Be an Undisclosed Issue

question 32

Multiple Choice

Which of the following may not be an undisclosed issue when buying a business?

• A) The current owner is in poor health.
• B) Dissatisfied customers
• C) Failure to keep up with market trends
• D) Patents are no longer valid.
• E) Equipment is obsolete.

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Definitions:

Current Account

Part of a country's balance of payments, it includes the trade balance, net income from abroad, and net current transfers.

Capital Account

A national account that records transactions involving the purchase and sale of assets, such as property rights and stocks, between residents and non-residents.

Personal Savings Rate

The percentage of personal disposable income that is saved by households rather than spent on consumption.

Current Account Deficit

A current account deficit occurs when a country's total imports of goods, services, and transfers are greater than its total exports, indicating it is spending more on foreign trade than it is earning.