On average, the risk of buying an existing business is
A) the same as for starting a brand new business.
B) higher than for starting a brand new business.
C) lower than for buying a franchise.
D) lower than for starting a brand new business.

Question

Quizplus · Accepted Answer

Buying an existing business comes with the advantage of having an established customer base, operating procedures, and possibly even staff. This reduces the risk associated with starting a brand new business from scratch. However, buying a franchise comes with the added advantage of having a proven business model and support from the franchisor, which further reduces the risk. Therefore, option C is incorrect. Option A is not entirely accurate as the risk could depend on various factors such as the industry, location, and overall market conditions. So, the best option is D as it highlights the advantage of buying an existing business.

On Average, the Risk of Buying an Existing Business Is