A firm that wants to expand or extend its operations in existing or new product areas may avoid many of the risks associated with the design, manufacture, and sale of additional or new product and remove a potential competitor by acquiring a suitable going concern.

Question

Quizplus · Accepted Answer

Acquiring a suitable going concern can indeed help a firm expand or extend its operations while avoiding some of the risks associated with developing new products. Additionally, it can remove a potential competitor from the market.

A Firm That Wants to Expand or Extend Its Operations