Azimuth Company Purchases a Small Business for $500,000

question 107

Multiple Choice

Azimuth Company purchases a small business for $500,000.The market value of the business's assets are $850,000,and the market value of the liabilities are $400,000.How much goodwill should Azimuth record?

• A) None
• B) $500,000
• C) $450,000
• D) $50,000

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Definitions:

TQM

Total Quality Management is a management approach focused on long-term success by focusing on customer satisfaction, and involving all members of an organization in improving processes, products, services, and the culture in which they work.

Organizational Change

The process through which organizations transform their structure, strategies, processes, or culture to adapt to changes in the environment.

Reengineering

is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.

Statistical Process Control

A methodology for monitoring, controlling, and improving a process through statistical analysis.