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(time recommendation - 12 minutes) BBB wants to expand by purchasing another business and has a choice between two stores/businesses - Star Burgers or
(time recommendation - 12 minutes) BBB wants to expand by purchasing another business and has a choice between two stores/businesses - Star Burgers or Moon Burgers. Both stores/businesses sell American style burgers in Sydney. Below are the ratios for the two companies over two financial years (2022 and 2021). BBB is looking for a company with the ability to generate higher profit per sale and the ability to qui convert sales to cash but will consider other ratios you identity as important. You are required to review the ratios provided below and provide a recommendation as to which company is a more suitable investment based on the criteria and other ratios, and justify whether BBB should purchase the company. Provide your answer in the following format: 1. Your recommendation of which company is more suitable (1 mark) 2. Explanation to support your recommendation with reference to the ratios (3 marks, one per supporting explanation) 3. Explanation of whether BBB should go ahead with purchasing the more suitable business at all (2 marks)
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