Refer to the Scenario Below to Answer the Following Questions

question 56

Multiple Choice

Refer to the scenario below to answer the following questions.
A Mature Café (Scenario)
Sarah has been growing and operating her café in an upscale neighbourhood. She is happy with how the business has continued to increase in revenues as her customer base has become loyal over the years. She has just over 30 employees, two of whom are managers.
The lease on the space is coming up for renewal and this has brought up the notion of leaving the business and exploring other interests she has in travelling through Africa and Southeast Asia. Sarah has worked hard and she wants to be sure she gets as much out of the business as she put into it.
Another factor is the increasing competition in the area and the sinking feeling she has that it will be next to impossible to differentiate her business from the big chains opening on several street corners. Her fear is that her sales may have plateaued and there in fact will be a decrease in sales in the near future.
-In spite of all the questions Sarah has about whether to sell, or reinvent the business, and so on, she is remaining ____________________ for opportunities she can get involved in aside from the café and any new ideas that may surface to give her a chance to diversify.

• A) new venture savvy
• B) entrepreneurially alert
• C) biz-smart
• D) in a dreamlike state
• E) new venture blind

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Definitions:

Goodwill Impairment Testing

A financial exercise to determine if the goodwill of an acquired company has decreased in value, indicating that the company may have overpaid for the acquisition.

ASPE

Accounting Standards for Private Enterprises, a set of accounting practices and standards for private companies in Canada.

Consolidated Statement

Financial reports consolidating the assets, liabilities, and income of a parent organization along with its subsidiary companies, showing them as a single entity.

Goodwill Impairment

A write-down of the value of goodwill on a company's balance sheet when the fair value of the acquired company falls below the value recorded at the time of acquisition.