Question

Buying an existing business _____.
a.
is beneficial because an established business always has a good reputation
b.
is not recommended because there are too many disadvantages
c.
allows the owner to build upon the goodwill of previous customers
d.
is a high risk because successful businesses are usually not sold

Answer 1

c. allows the owner to build upon the goodwill of previous customers

Explanation: Buying an existing business provides an established customer base, brand recognition, supplier relationships, and operational systems—i.e., goodwill—that the new owner can leverage (though due diligence is still necessary).