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 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 presence or absence of debt financing does not usually affect whether a private enterprise is acquired as a bargain purchase. The other options (A, B, and D) all suggest situations where the current owner is motivated to sell the business at a lower price, which could make it a bargain for the buyer.

Which of the Following Is Not a Reason Why a Private