Which of the following is NOT a reason why a private enterprise may be acquired as a bargain purchase?
A)The business only has equity financing and has no debt financing.
B)It is a family business and the next generation does not want to continue the business.
C)The owner has health problems and does not have a successor.
D)The owner is no longer interested in the business.

Question

Quizplus · Accepted Answer

The statement does not provide a valid reason for a private enterprise to be acquired as a bargain purchase. The lack of debt financing may have an impact on the financial health of the business, but it is not a sufficient reason for acquiring it at a bargain price. The other options provide plausible reasons that could lead to a seller accepting a lower price for their business.

Which of the Following Is NOT a Reason Why a Private