Buying a Successful Business Can Help an Entrepreneur in All

question 33

Multiple Choice

Buying a successful business can help an entrepreneur in all of the following ways except ________.

• A) Reducing risk
• B) Issues of location
• C) Customer development
• D) Product or service delivery
• E) All of the above are helpful.

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Definitions:

Profitability Index

A financial tool used to determine the desirability of an investment or project, calculated as the present value of future cash flows divided by the initial investment.

Present Value

The present value of a future amount of money or series of payments, calculated based on a certain rate of return.

Initial Investment

The amount of money used to start a business or project.

Cash Operating Costs

The expenses a company incures during its day-to-day operational activities, usually excluding non-cash costs like depreciation.