The Existence of Goodwill on a Corporate Balance Sheet Indicates

question 42

Multiple Choice

The existence of goodwill on a corporate balance sheet indicates that the corporation has:

• A) been profitable in the past.
• B) depreciated its tangible assets.
• C) intangible assets from past acquisitions.
• D) retained earnings resulting from past income.

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Definitions:

Utility Maximizing

The process by which individuals select the mix of goods and services that maximizes their satisfaction or utility, given their budget constraint.

Elastic Demand

A situation where the demand for a product is sensitive to price changes, showing a significant change in quantity demanded when prices fluctuate.

Market Demand Curve

Represents the total quantity of a good or service that all consumers in a market are willing and able to purchase at different prices.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price point, at a specific time.