BUISENESS MANAGEMENT
BUSINESS PLANNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following would be a disadvantage of buying an existing business?
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Time is needed to develop a customer base.
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It may be difficult to assess the value of goodwill.
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Existing employees can offer advice and assistance.
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The owner does not have complete control over the operations.
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Explanation:
Detailed explanation-1: -The answer is b. Capital is not required for a new business since it already exists. Using additional capital to purchase the business limits one’s total capital, which is considered a disadvantage.
Detailed explanation-2: -its location may have become unsuitable; equipment and facilities may be obsolete; change and innovation are hard to implement; inventory may be outdated; accounts receivable may be worth less than face value; and the business may be overpriced. 2.
There is 1 question to complete.