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Concept and Case: Kamran is a naive entrepreneur/sole proprietor. He is aiming to start a fast food business at street level. He has found an
Concept and Case: Kamran is a naive entrepreneur/sole proprietor. He is aiming to start a fast food business at street level. He has found an option to buy a newly started but recently closed business (A street fast food stall). The target business is just 3 weeks old and not much is on the paper, available to assess the value of the business. Before taking the final decision of buying this business prospect, Kamran needs to do the complete valuation of the business. The business has no previous records of sales, profits/losses or any other financial/accounts based information which is helpful for Kamran to run an evaluation analysis for this prospect. All he can evaluate the following list of assets. - Sale/display Counter - Frier, Stove and Oven - Cutlery, and other raw material - Miscellaneous electric/electronic items Requirements: 1- Which of the given evaluation method is suitable for the prospect business evaluation before buying it. 2- Fill in the given table (column-2) as per sample given. Choose among 2 options (suitable or not suitable). 3- Justify your selection of second column by writing 3 logical arguments in the third column for each selection. ( 1.56=9 Marks) Concept and Case: Kamran is a naive entrepreneur/sole proprietor. He is aiming to start a fast food business at street level. He has found an option to buy a newly started but recently closed business (A street fast food stall). The target business is just 3 weeks old and not much is on the paper, available to assess the value of the business. Before taking the final decision of buying this business prospect, Kamran needs to do the complete valuation of the business. The business has no previous records of sales, profits/losses or any other financial/accounts based information which is helpful for Kamran to run an evaluation analysis for this prospect. All he can evaluate the following list of assets. - Sale/display Counter - Frier, Stove and Oven - Cutlery, and other raw material - Miscellaneous electric/electronic items Requirements: 1- Which of the given evaluation method is suitable for the prospect business evaluation before buying it. 2- Fill in the given table (column-2) as per sample given. Choose among 2 options (suitable or not suitable). 3- Justify your selection of second column by writing 3 logical arguments in the third column for each selection. ( 1.56=9 Marks)
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