John Owns Land at the Edge of a Small Town

question 2

Essay

John owns land at the edge of a small town. When he purchased the land it was not zoned and he operated an auto repair business there. Several years later, the town annexed John's land as well as the surrounding land. The town then zoned all of the annexed land single -family residential. John's business is the only business within the residential area. What right does John have to continue his auto repair business? Are there any restrictions on this right?

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Definitions:

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Marketable Securities

Short-term investments that are easily convertible into cash, typically within one year.

Debt-to-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, crucial for assessing financial leverage.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity position, calculated by dividing current assets excluding inventory by current liabilities.