Question: What ethical concerns, if any, are raised by your involvement in the partnership that purchases small businesses, and what must you do to address them?

Please answer the question in full detail, and explain your answer as much as you can. Thank you!

Keith wants to sell Ross Big-N-Tall and retire immediately. He believes he can sell the company within a year but is uncertain of its current value. The value shown on his Statement of Financial Position is an estimate his accountant made several years ago. He would like your opinion as to the current value of the com- pany. The business is very stable and he wants to use last year's earnings as the basis for the valuation. As he considers purchasing a small business an aggressive investment, he wants a discount rate used in the valuation of the expected return for aggressive stocks, plus 3%. You are one of 10 partners in a partnership that purchases small businesses it feels are undervalued and attempts to turn them around for a profit. You mention Keith's desire to sell Ross Big-N-Tall quickly to your partners, although you are sensitive to the fact that your obligation of confidentiality prevents you from dis- closing any financial information about the business. Your partners tell you they believe big and tall stores have a bright future because of the national obesity epidemic and they would be interested in purchasing Keith's business if the price were right