A Purchaser of the Assets of a Business Must Allocate

question 77

Multiple Choice

A purchaser of the assets of a business must allocate the purchase price to the individual assets in accordance with the written agreement between the purchaser and the seller.Which of the following assets would be least preferred for purposes of allocating value from the purchaser point of view?

• A)goodwill
• B)equipment
• C)office building
• D)inventory

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Definitions:

Terminal Values

Terminal values are the deeply held beliefs and principles that an individual or culture sees as ultimate goals and ends in life, such as happiness, success, and peace.

Instrumental Values

Core values that reflect beliefs about the means to achieve desired ends.

Complex Phenomena

Events or processes that involve multiple interrelated factors and cannot be easily explained or predicted by simple rules or models.

Social Representations

The shared beliefs, ideas, and values that are prevalent within a society or social group.