When the Owner of a Business Discusses 'Goodwill' What Does

question 5

Multiple Choice

When the owner of a business discusses 'goodwill' what does he or she mean?

• A)Goodwill is the name of the business
• B)Goodwill is the residual value created by an owner of a business in terms of their time,effort and public image after the value of the physical and tangible assets are deducted from the total value of the business
• C)Goodwill is when the company throws in extra goods at the time of purchase
• D)All of these choices

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Definitions:

1934 Act

Refers to the Securities Exchange Act of 1934, which governs the trading of securities in the U.S., aiming to protect investors against malpractice.

Willful Violations

Willful violations refer to deliberate or intentional breaches of a legal duty or regulation, often resulting in stricter penalties or damages.

Fine

A monetary penalty imposed as punishment for an offense or breach of law.

Penny Stock Reform Act

is legislation aimed at increasing transparency and protecting investors in the market for penny stocks, typically low-priced, speculative securities.