Short Case Scenario 14-1

question 134

Essay

Short Case Scenario 14-1
Mary Ann has always loved to cook and is interested in starting a catering business. Being aware of the failure rate of new businesses, she is considering buying an existing catering business that is up for sale. The current owners claim that the business is highly profitable, but Mary Ann has her doubts. She wonders why the owners would be so interested in selling the business if it is such a money maker. Furthermore, the price that they are asking seems high to Mary Ann. Without any formal training in accounting, Mary Ann asks a friend, Rolanda, for advice.
-Rolanda suggests that Mary Ann hire an accountant to audit the financial statements.Mary Ann is not sure what an audit involves.Explain auditing.

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Definitions:

Intrinsic Motivated

Intrinsically motivated describes when one engages in an activity for the inherent satisfaction or pleasure derived from the activity itself, rather than for some separable outcome.

Desirability Theory

A theory focusing on the factors that make concepts, objects, or behaviors appealing and sought after by individuals or societies.

Self-Control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses, often to achieve long-term goals.

Social Networking Sites

Websites or applications that enable users to create and share content or to participate in social networking with friends, family, or other users.