Question 1

What is one major advantage of buying an existing business?

Accepted Answer

Established customer base

Answer

Higher initial investment

Answer

Uncertain market demand

Answer

Increased startup time

Question 2

What is a common disadvantage of buying a business?

Accepted Answer

Inherited debts and liabilities

Answer

Access to trained employees

Answer

Immediate profit generation

Answer

Established brand reputation

Question 3

What is one potential financial benefit of buying a business instead of starting one from scratch?

Accepted Answer

Existing revenue streams

Answer

Longer time to see profits

Answer

Need for extensive market research

Answer

Higher risk of failure

Question 4

What is a potential drawback of buying a franchise rather than an independent business?

Accepted Answer

Ongoing royalty fees

Answer

Lower upfront costs

Answer

Complete independence

Answer

Full control over branding

Question 5

What is an advantage of buying a business that is struggling?

Accepted Answer

Potential for turnaround and profit

Answer

Guaranteed success

Answer

Higher purchase price

Answer

Less competition

Question 6

What is a common reason entrepreneurs choose to buy an existing business?

Accepted Answer

Immediate cash flow

Answer

No initial costs

Answer

Complete creative freedom

Answer

Lower regulatory requirements

Question 7

What is a significant risk associated with purchasing an established business?

Accepted Answer

Hidden operational issues

Answer

Instant customer trust

Answer

Immediate market presence

Answer

Access to established supply chains

Question 8

What is one potential disadvantage of buying a well-known brand?

Accepted Answer

High purchase price

Answer

Loyal customer base

Answer

Strong brand recognition

Answer

Established market presence

Question 9

What is one of the advantages of buying a business rather than starting one from scratch?

Accepted Answer

Proven business model

Answer

Lower competition

Answer

Uniqueness in the market

Answer

Less complexity in operations

Question 10

What is a common challenge faced when buying a business?

Accepted Answer

Due diligence process

Answer

Guaranteed growth

Answer

Simple transaction process

Answer

Immediate integration into market

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