Bart Purchased Three-Quarters of a 32% Interest in a Swiss

question 31

Multiple Choice

Bart purchased three-quarters of a 32% interest in a Swiss Chalet franchise for $270,000. What is implied value of the franchise?

• A) $115,200
• B) $632,800
• C) $980,750
• D) $1,125,000
• E) $1,625,000

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Definitions:

Company Officers

Individuals with executive roles responsible for managing the operations and affairs within a corporation, such as CEOs and CFOs.

Owner's Equity

Owner's Equity represents the residual interest in the assets of a business after deducting liabilities, essentially the owner's claim on the company's assets.

Net Income

The financial gain a company achieves once all expenses, taxes, and other costs are subtracted from the total sales.

Owner Withdraw

The process by which the owner of a business takes out funds from the business for personal use.