Short Case Scenario 14-1

question 117

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.
-Of what does owners' equity consist?

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Definitions:

Unconscious Mind

A part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Unacceptable Ideas

Concepts, thoughts, or plans considered inappropriate or offensive within a given context or community.

Regression

A defense mechanism of retreating to the thoughts and actions of an earlier, “safer” age.

Developmental Level

A measure of the progress of a child's physical, emotional, intellectual, and social development compared to typical milestones.