Short and Shearer Are Two Friends Who Want to Begin

Multiple Choice

Short and Shearer are two friends who want to begin an entrepreneurship as business partners. They need to decide whether to start up a new business or to buy an existing business. To do this, Short and Shearer need to weigh the pros and cons of each in order to see what the best strategy for them would be. Which of the following, if true, would weaken the case for Short and Shearer buying an existing business?

A) Short and Shearer could more easily obtain financing for the purchase.
B) Buying an existing business involves fewer legal hurdles than starting a new one.
C) Franchises have more potential for success than single-facility businesses.
D) Short and Shearer have limited funds to start with.
E) Existing businesses cost less to purchase than new ones.