Identify an accurate statement about buying an existing business.
A)Buying an existing business does not take as much planning and thought as starting a business from scratch.
B)An entrepreneur has to discover the sources of cash flow after buying an existing business because there is no established cash flow.
C)An existing business has the benefit of having an established set of processes.
D)There is no difference in the risk of buying a franchise compared to starting a business from nothing but an idea.

Question

Quizplus · Accepted Answer

An accurate statement about buying an existing business is that it already has an established set of processes. This can save an entrepreneur time and effort in creating business systems from scratch. Additionally, an entrepreneur can review the business's financial statements to assess cash flow and profitability. This can provide a more accurate picture of the business's potential and help mitigate risk. Option A is not accurate, as buying an existing business requires significant planning and research. Option B is not accurate, as an existing business typically has an established cash flow. Option D is not accurate, as buying a franchise has different risks and benefits compared to starting a business from nothing but an idea.

Identify an Accurate Statement About Buying an Existing Business