A Dissatisfied Guest Can Do Any of the Following

question 48

Multiple Choice

A dissatisfied guest can do any of the following. From the organization's perspective, which is WORSE?

• A) leave never to return
• B) complain
• C) spread negative word of mouth
• D) suffer in silence

Calculate and understand the treatment of goodwill and other intangible assets in equity method investments.

Understand the recognition and measurement of deferred intra-entity gross profit.

Evaluate the reporting requirements for changes in accounting principle as they relate to the equity method.

Understand the calculation and reporting of gains or losses on the sale of investments.

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Definitions:

Inferior Good

A type of good whose demand decreases as the consumer's income increases, opposite to normal goods.

Complementary Good

A product or service that enhances the use or value of another product or service when used together.

Substitute

A good whose demand increases when the price of another good increases. For example, two brands of cola soft drinks are substitutes.

Complement

A good or service that is used together with another good or service, increasing its demand.