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

Question

Quizplus · Accepted Answer

The business having only equity financing and no debt financing is not a reason for it to be acquired as a bargain purchase. The other options, such as family succession or owner disinterest, can lead to a potential seller being more motivated to sell at a lower price, making it a bargain purchase for the buyer.

Which of the Following Is Not a Reason Why a Private