XI. Read the text and divide it into some meaningful parts giving the proper title to each of them

WHICH IS BETTER – TO BUY AN EXISTING FIRM OR START

A NEW ONE?

This is one of the most important questions when the person decides to become engaged in a small business. It is known that there are advantages and disadvantages of both buying an existing firm and starting a new one. The advantages of buying an existing business are: a proven business, customers' goodwill, the established lines of supply and credit, trained employees, available physical facilities (equipment and premises) and so on.

Besides, there may be also disadvantages of buying an existing business, for example, the business is losing money, the available employees are not desirable, not very good location for business, the facilities are not completely suited to your business, the equipment may be old or in need of repair and so on.

Starting a new business also has advantages and disadvantages. Starting a new business also requires extensive investigation and analysis. There are factors that may by attractive to start a new business rather than to purchase an existing one. To such factors belong: you may choose the best location for your business, once it is the critical decision between success and failure in many businesses, physical facilities can be constructed to the business planned, you may hire employees you need.

But, nevertheless, there exist some disadvantages of starting a new business: it takes considerable time and expenditures, it is necessary to work up "bugs" (узкие места), to establish new lines of supply and sales. Thus, the entrepreneur has many decisions to make when he decides to become engaged in a small business.

XII. Write a summary of the text

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