Which of the following statements concerning financing the purchase of an existing business is not true?
A) The business seller usually is a good candidate for a source of financing.
B) The deal should allow the buyer to make the loan payment out of the company's cash flow.
C) The buyer should wait until late in the purchase process to arrange financing to avoid processing fees in case the deal falls through.
D) All of the above

Question

Quizplus · Accepted Answer

The buyer should not wait until late in the purchase process to arrange financing. It is important to have financing options in place before entering into any agreement and negotiating the terms of the deal. Waiting until later in the process could result in lost opportunities or being forced to accept less favorable financing terms.

Which of the Following Statements Concerning Financing the Purchase of an Existing