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In: Economics

Shema is planning to start a new business selling frozen foods. However, she was approached by...

Shema is planning to start a new business selling frozen foods. However, she was approached by her old friend who intends to sell the profitable frozen foods business to her. Her friend’s business sells a variety of frozen foods and located in Kuala Lumpur with an average monthly sales of RM300,000. Now, Shema has to decide whether she should go ahead with her own plan to create her own business or to buy the existing business from her old friend.

  1. As a business consultant, describe to Shema the advantages and disadvantages of the two alternatives. Which of the two alternatives would you recommend to Shema? Justify your recommendation.

  1. Should Shema conduct a due diligence before buying the business? Why? Justify your answer.

  1. If Shema decided to buy the existing business, what are the five factors that she needs to consider before buying the business?

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Expert Solution

The explanation of the above question mentioned in below image

Rahul Sunny answered 2 years ago
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