During their discussions, Angela asks Jessica what are the annual profits of the restaurant….

During their discussions, Angela asks Jessica what are the annual profits of the restaurant.

Jessica tells her that ‘the restaurant has been making $10,000 per year in profits’.

She hands her a box of papers and says ‘Here are the accounts, you can check for yourself if you like’.

Angela trusts Jessica and only checks the accounts for 2007, which do show profits of $10,000

Relying on what she has told them, Angela decides to purchase the business.

However, after a few months, when business is very slow, she has another look at the accounts and realises that the business has only been making $2,000 per year for the last 5 years (since 2008).

Advise Angela of her common law rights.

 

Looking for a Similar Assignment? Let us take care of your accounting classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Active Discount Code FREE15