Larry has been the chief financial officer (CFO) of Maxima Auto Service for the past 10 years. The company has reported profits each year it's been in

business. However, this year has been a tough one. Increased competition and the rising costs of labor have reduced the company's profits. On December 30,

Larry informs Robert, the company's president and Larry's closest friend for the past 10 years, that it looks like the company will report a net loss (total

expenses will be greater than total revenues) of about $50,000 this year.

What is the issue?

Who are the parties involved? Name at least two.

What factors should be considered in makinga decision?