Buy

### What is the primary purpose of a purchase agreement in a real estate transaction? - [x] To legally bind both the buyer and the seller to the terms of the sale. - [ ] To provide an estimated market value of the property. - [ ] To temporarily reserve the property for the buyer. - [ ] To ensure that the property will be furnished upon sale. > **Explanation:** A purchase agreement legally binds both the buyer and the seller to the terms of the sale, including price, contingencies, and closing date. ### What is generally the first step in the process of buying real estate? - [ ] Making an offer - [ ] Conducting a home inspection - [x] Determining your budget - [ ] Closing the deal > **Explanation:** The first step is determining your budget. This helps you understand what you can afford and narrows down your property search. ### What does buying on credit involve? - [x] Acquiring goods or services now and paying for them later. - [ ] Buying goods at a discounted price. - [ ] Paying immediately in cash. - [ ] Entering a joint purchase agreement with another buyer. > **Explanation:** Buying on credit involves acquiring goods or services immediately and paying for them at a later date, often with interest. ### Which term is synonymous with buying a company to merge their business functions? - [ ] Transaction - [ ] Purchase agreement - [x] Acquisition - [ ] Lease > **Explanation:** Acquisition refers to the purchase of one company by another to gain control over its operations and assets. ### In business transactions, what does the term "bargain" primarily refer to? - [ ] An official contract - [ ] An acquisition - [ ] A purchase price - [x] Negotiating the purchase of goods or services at a favorable price > **Explanation:** A bargain refers to negotiating the purchase of goods or services at a price that is favorable to the buyer. ### What is a common risk associated with buying on credit? - [ ] Losing the purchase receipt - [x] Accumulating debt - [ ] Ownership disputes - [ ] Immediate payment obligations > **Explanation:** Buying on credit can lead to the accumulation of debt if payments are not managed properly. ### Why would a company seek a buyout? - [ ] To sell their excess products - [ ] To diversify their product line - [ ] To enhance their public image - [x] To gain control over the buying company > **Explanation:** A company may seek a buyout to gain control over the buying company, merge operations, and increase market dominance. ### What does a "purchase transaction" involve? - [x] The act of buying or selling something. - [ ] Long-term leasing - [ ] Exchanging goods without money - [ ] Only buying without selling > **Explanation:** A purchase transaction involves the act of buying or selling goods, services, or property. ### Who benefits the most from a bargain? - [x] The buyer - [ ] The seller - [ ] Both parties equally - [ ] The intermediary > **Explanation:** The buyer benefits the most from a bargain, as they can acquire goods or services at a lower price. ### What is necessary for a legal contract to be enforceable? - [ ] Verbal agreement - [x] Mutual consent and sign-off by all parties involved - [ ] A witness - [ ] Public announcement > **Explanation:** A legal contract needs mutual consent and sign-off by all parties involved to be enforceable by law.