Essay
Mary Ann is considering buying an existing catering business that is up for sale. The current owners claim that the business is highly profitable, but Mary Ann has her doubts. She also thinks that the price that they are asking seems high. In reviewing the financial statements of the catering business, she discovers that the current balance sheet shows that the business has more liabilities than assets. Why would this explain why the owners want to sell the business?
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The current owners face a negative owner...View Answer
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