Elinor Wolf, CPA, on behalf of the plaintiffs, admitted in her interrogation: "Is there any significance to the concessionaire's experience in forecasting profits and revenues? A. There is significance" [p. 104 of the transcript, lines 26-28]; "If, for example, a person comes along who has no experience in operating cafes... Doesn't this affect the assessment of... Future profits? A. It may have an effect, among other things, yes."
Third, a café business is considered to have a high level of risk in terms of its economic ability to continue operating as a business.
CPA Wolf, on behalf of the plaintiffs, testified in her interrogation: "About 1/3 of these businesses [cafes - Y.G.] have high turnover... It's also an industry [cafes - Y.G.], which even a state-guaranteed fund is reluctant to give funding, because it's considered dangerous. It [cafes - Y.G.] is one of the industries that are considered to be at a high level of risk" [p. 107 of the transcript, lines 24-27].
Fourth, if we compare N/3 [the profits of the partnership from Dec. 14 to May 15, before the operation of the café was sold to Sol] with Sol's losses from operating the café from August 15 to Dec. 16, it can be concluded as follows:
- The components of the fixed expenses of the café [see Table B-N/3] were known in advance, and Sol, like the partnership, had no effect on the amount of fixed expenses such as: rent, municipal taxes, electricity and water, etc.
- Saul testified that he had sales of about ILS 300,000, more or less the same income as the partnership, when she had previously operated the café.
Saul testified in his interrogation: "Q. You mean that there were revenues of almost ILS 300,000 [to Sol when it operated the café - Y.G.]? A. Correct" [p. 479 of the transcript, lines 5-6]; "Q. And here [in Income of the Partnership from Des. 14 to May 15, Exhibit N/3 - Y.G.]? A. More or less the same revenues" [p. 479 of the transcript, lines 25-27].
- Most of Saul's losses were caused by employee costs [number of employees and their cost], and food costs - Saul's poor management of the café.
Saul testified on this matter in his interrogation: "Q. ... As a manager do you have control over your food cost cost ? A. True [p. 585, lines 29-30]; "The cost of the workers [the number of employees and the cost of their wages - Y.G.] depends on you? A. Yes" [p. 589, lines 9-10].