To continue business or not
1 To continue business or not on Wed Jan 27, 2016 4:43 pm
2 Re: To continue business or not on Wed Jan 27, 2016 8:49 pm
If you want to quit the business, but some is unsolved after your parent died, then you can do that in the OLD Sole P. Such option has a time limit. (I BELIEVE max 12 months.)
3 Re: To continue business or not on Tue Mar 01, 2016 5:22 pm
1. Assess the value of the business as it is. Use balance sheet, income statement and cash control. This should give you an objective idea of the value of the business. (Exclude the mortgaged property which is a different transaction. Include liabilities, taxes etc.). Seeing this, at what value are you willing to buy this business? When will you get your Return on Investment? If not attractive, then it is status quo.
2. If you were to start a similar business, using financial statements, how much capitalization do you need? What is the return on investment?
3. Compare 1 and 2. See which one is favorable. Do you have the skills to run the business?
4. Consider also the option of filing for bankruptcy. There are steps to file with the BIR, City Hall etc. And if the owner dies, there are estate taxes to be paid.
Which one is favorable to you?
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