In Determining the Value of an Existing Business, One of the Potential

question 63

Multiple Choice

In determining the value of an existing business, one of the potential sources of value is the current owner's goodwill. In this case, goodwill refers to ________.

• A)the location of the business in a desirable area
• B)intangible assets such as customer service
• C)donations to local charities
• D)the current owners' membership in professional associations

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Definitions:

Organizational Innovation

The process of implementing new ideas, workflows, methodologies, or services within an organization to improve efficiency and outcomes.

Developmental Process

A sequence of stages or steps that lead to growth, progress, or maturity in individuals, organizations, or systems.

Scapegoating

The practice of singling out one party for unmerited blame or negative outcomes.

Bounded Rationality

A concept explaining that the cognitive limitations of decision makers lead to a less than optimal decision-making process.