Sheila Owns a Small Boutique

question 5

Multiple Choice

Sheila owns a small boutique.She wants to move on to other things.She thinks she might be comfortable giving up complete ownership of the business but would still like to maintain some control over it.Which of these is she considering?

• A) franchising
• B) multisite expansion
• C) push marketing
• D) finding additional segments

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Definitions:

Investing Activities

Financial transactions that relate to the acquisition or sale of assets, investments, and other long-term items that are not part of the company's primary operations.

Amortization

The process of gradually reducing the cost of an intangible asset through scheduled charges to expense over its useful life.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to calculate cash flow from operating activities.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.