Question

Which situation is ideal for an entrepreneur to buy an existing business?

Answer 1

Downturn and exceeds. If the economy in a market down turns more busisinesses fail and come up for sale.

Answer 2

Answer:

The correct answer would be C for 1 and B for 2, Downturn and Exceeds.

Explanation:

During an economic Downturn, entrepreneurs find it easy to locate businesses up for sale because supply exceeds demand in this situation.

Entrepreneurs are the enthusiastic people who start businesses on their own and are liable for all the losses and profits incurred. They are strong decision makers. They are highly skilled people. They are highly innovative people who takes out ways to pass through sever problematic situations. So in this question, the entrepreneurs would go to buy an existing business during the downturn, because supply exceeds demands, which means there are surplus goods in the stock, and an entrepreneur knows very well that how to come out of this situation through his strong analytical, problem solving and decision making skills.