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Chapter 6 Taking Over an Existing Business TRUEFALSE 1. Existing businesses do not have to be scrutinized carefully to determine whether they are a worthwhile investment of time and money. (A) True (B) False Answer : (B)
2. The fact that a business's image is difficult to change is a distinct advantage when taking over an existing business. (A) True (B) False Answer : (B)
3. Buying an existing business is becoming a more popular way to own a small business. (A) True (B) False Answer : (A)
4. A major advantage of purchasing an existing business is that the customers are familiar with the location. (A) True (B) False Answer : (A)
5. If an existing business is purchased, the buyer may be potentially liable for past business contracts.