Which of the indicators could be a reason to turn down bobby

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Chuck Lewis currently owns several massage spas in Toronto. He is worried about the slow growth that his business is experiencing. He is considering acquiring another stable company in a related industry. He is assessing an offer madeby his friend Bobby Ahmed, who wants to sell his nail salon business he currently owns in downtown Toronto.

Problem 1: Which of the following indicators could be a reason to turn down Bobby's offer based on business involving anunacceptable level of risk?

a. Bobby is willing to provide financing to Chuck to help him acquire the business
b. The long-term assets of Bobby's business are fully depreciated
c. Chuck is not aware of any other similar transactions that he could use as an estimate to base the comparative value
d. Due to increasing competition, Bobby's business has not been profitable for the past three years

Reference no: EM132740055

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