Read the following text carefully:
Mr. Prasad started a cakes and confectionery business in 2010 by the name of ‘Happiness to Order’. In no time his bakery became the talk of the town for customized cakes as per the occasion. He used high-quality liquid glucose and icing sugar to make the fondants for his cakes. Seeing the popularity, he opened 4 more outlets in different localities.
Over the years people have become cautious of what they eat and are cutting down on sugar. The fondants that were once the USP of his bakery were now losing market to the competitors as they introduced a healthier version of bakery products, especially cakes without gluten or sugar but almond flour, oats flour, etc.
His cooks advised him to experiment with healthier options which Mr. Prasad was reluctant to try. He could not adapt to the changing environment and all 5 outlets started running into loss. Eventually, he decided to close the business. He owes ₹ 15,00,000 to his supplier firm whom he had taken goods on credit in the past year.
On the basis of the given text and common understanding, answer the following questions:
(I) Mr. Prasad’s business funds are insufficient to repay the debts, can the supplier claim Mr. Prasad’s assets? Give valid reasons in support of your answer.
(II) “Environment scanning is important for an entrepreneur.” Justify the statement, giving valid reasons in support of your answer.