Short Case Scenario 14-1

question 90

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 a certain amount of goodwill is likely included in the selling price.What is goodwill?

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Definitions:

Neglect

The failure to provide necessary care, assistance, or attention, resulting in potential or actual harm to the health, safety, or welfare of an individual or entity.

Physical Needs

Basic requirements of the human body necessary for maintaining life and physical health, such as air, food, water, shelter, and sleep.

Emotional Needs

Psychological requirements essential for mental well-being, such as love, acceptance, and a sense of belonging.

Social Needs

The human requirements for forming interpersonal relationships, being part of a community, and having a sense of belonging and acceptance.