Buying for the business under her tutelage

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Reference no: EM131192608

Mary owned a small business and she was quite successful in it. Mary had started the business when her children were small but after they were grown, she had her sons working for her and they did the buying for the business under her tutelage. After 20 years in the business Mary decided to sell her business to her sons. The business was a specialty store and Mary was very good at figuring out what would sell and what wouldn't. Mary sold the business and the sons continued the business. After the sale, the sons wanted to expand the product line of the business and so they contacted the vendors that they had been working with and bought new items for the business. The sons didn't have the business sense that Mary had and the business quickly started losing money. After about 2 years of losing money, the sons had to close the business and owed the vendors about $300K. The vendors then sued Mary for the monies due. Mary replied in the answer that she hadn't owned the business for about 2 1/2 years. Who wins and why?

Reference no: EM131192608

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