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:

Proportion

A mathematical relation between parts, quantities, or amounts that expresses how much one is relative to the other.

Equilibrium

A state in which supply and demand are balanced, or a situation in which conflicting forces cancel each other out, resulting in a stable outcome or condition.

Hawk-Dove Game

A model in game theory that explores the conflict between aggressive (hawk) and peaceful (dove) strategies.

Payoff

The return or reward received as a result of an action or decision, particularly in the context of games or economic models.