Discuss Some of the Potential Pitfalls of Buying an Existing

question 30

Essay

Discuss some of the potential pitfalls of buying an existing business that might be detrimental to your business idea.

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Definitions:

Partially Disclosed

Refers to a situation where some but not all relevant information has been revealed.

Indemnification

Payment for loss or damage suffered.

Fiduciary Relationship

A relationship based on trust such as exists between an attorney and a client, an agent and a principal, a guardian and a ward, a trustee and a beneficiary, or a director and a corporation.

Principal

A person who authorizes an agent to act on her or his behalf and subject to her or his control.