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3 years ago

List three advantages of buying an existing business

1 answer:

8 0

Buying an established business means immediate cash flow. The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors. You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.

Buying a business is generally considered less risky than starting your own business, especially if you can buy a well-managed, profitable business for the right price. Consider these advantages:

The difficult start-up work has already been done. The business should have plans and procedures in place.
Buying an established business means immediate cash flow.
The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors.
You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.
A market for your product or service is already established.
Existing employees and managers will have experience they can share.

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A Treasury bill with 119 days to maturity is quoted at 97.630. What are the bank discount yield, the bond equivalent yield, and

Dovator [93]

Answer:

discount yield=7.17%

bond equivalent yield=7.34%

effective annual yield =7.64%

Explanation:

Discount yield =discount /face value*360/t

where t is the number of days to maturity

discount =face value -issue price

discount=100-97.63

discount=2.37

discount yield =2.37/100*360/119

discount yield=7.17%

bond equivalent yield=(1+periodic yield)^360/t-1

periodic yield =discount/face value=2.37/100=2.37%

bond equivalent yield =(1+2.37%)^(360/119)-1

bond equivalent yield=7.34%

effective annual yield=(1+HPY)^365/t-1

Holding period yield (HPY)=discount/price=2.37/97.63

HPY=2.43%

effective annual yield=(1+2.43%)^(365/119)-1

effective annual yield =7.64%

6 0

3 years ago

Martinez Furniture Company started construction of a combination office and warehouse building for its own use at an estimated c

baherus [9]

Answer:

$530,672

Explanation:

Base on the scenario been described in the question, we can use the following method to compute the avoidable interest on this project

Use the attached file below to find the solution to given problem .

3 0

4 years ago

Diversification is important and investing because

Lelechka [254]

You don't want all of your eggs in one basket. If one stock and/sector of the market sinks, hopefully it will be offset by your diversification.

6 0

3 years ago

Glebe Company accepted a credit card account receivable in exchange for $1,100 of services provided to a customer. The credit ca

zimovet [89]

Answer:

Account receivable balance = $1,100 - ($1,100* 5%)

Account receivable balance =$1,100 - $55

Account receivable balance = $1,045

Date Account Title Debit Credit

Cash Account $1,045

To Accounts receivable $1,045

7 0

3 years ago

Managers of every company should be willing and ready to modify their strategies because?

Keith_Richards [23]

Managers of every company should be willing and ready to modify their strategies because: a) market conditions and circumstances are changing over time or the current strategy is clearly failing.

<h3>Who is a manager?</h3>

A manager can be defined as an individual who has been trained to acquire and distribute resources, as well as provide guidance, support, administrative control, and supervision to the employees who are working in a business organization (company), especially by being morally upright, well behaved and promoting the business's vison, culture, and values at all times.

<h3>What is a marketing strategy?</h3>

Marketing strategy can be defined as a technique that is typically used by business firms to attract customers to their goods or service, especially by giving them a lower price during its initial operation and offering.

In conclusion, we can reasonably infer and logically deduce that managers of any company should be willing and ready to modify their strategies because market conditions and circumstances are dynamic, and as such changing over time or the current strategy is clearly failing.

Read more on marketing here: brainly.com/question/27534262

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Complete Question:

Managers of every company should be willing and ready to modify their strategies because

a) market conditions and circumstances are changing over time or the current strategy is clearly failing.

b) the task of crafting strategy is a one-time event.

c) the strategic vision necessitates periodic updating.

d) frequent changes in strategy make it very difficult for rivals to imitate.

e) all strategies are reactive.

8 0

2 years ago