Which of the Following Statements Concerning Financing the Purchase of an Existing

question 123

Multiple Choice

Which of the following statements concerning financing the purchase of an existing business is not true?

• A) The business seller usually is a good candidate for a source of financing.
• B) The deal should allow the buyer to make the loan payment out of the company's cash flow.
• C) The buyer should wait until late in the purchase process to arrange financing to avoid processing fees in case the deal falls through.
• D) All of the above

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Definitions:

Chief Executive Officer

The highest-ranking officer in a company or organization, who is responsible for making major corporate decisions.

Independent Contractor

An individual or entity contracted to perform work for another entity as a non-employee, typically responsible for paying their own taxes and benefits.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make key decisions for a corporation.

Liability

Refers to legal responsibility for one's actions or omissions, typically resulting in the obligation to pay damages or compensation.