Purchases of existing businesses may occur through _____ in which the business is bought over a period of time with money earned from the business.

Question

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Earn-outs involve purchasing a business over a period of time with the money earned from the business. This allows the buyer to negotiate a lower purchase price initially and pay the remainder based on the business's future financial performance. This is often used when the buyer is unsure of the business's financial stability or potential, and the seller wants to ensure a certain level of payment for their business.

Purchases of Existing Businesses May Occur Through _____ in Which