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

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Definitions:

Active Approach

A strategy where decisions are made through direct involvement and proactive measures, often in context to investment and management.

Potential Output

The highest level of economic output an economy can sustain over the long term without increasing inflation, determined by available resources and technology.

Aggregate Demand

The sum total of desires for products and services within an economic entity, marked at a specific price level through a chosen timeframe.

Expansionary Gap

Occurs when an economy's actual output is higher than the potential output, often leading to higher inflation.