During the Past Two Years, Through Extensive Advertising and Improved

question 115

Multiple Choice

During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange Corporation may amortize.

• A) $16,667
• B) $26,667
• C) $33,333
• D) $100,000
• E) None of the above

---

Definitions:

Sensitization

An increased reaction to a stimulus following repeated exposure to it, often used in the context of allergic reactions or drug tolerance.

Long-term Potentiation

A lasting increase in signal transmission between two neurons that results from their simultaneous activation, believed to be a cellular mechanism underlying learning and memory.

Synaptic Connections

The points at which neurons (nerve cells) communicate with each other, passing messages through chemical signals.

Learning

Learning is the process of acquiring new or modifying existing knowledge, behaviors, skills, values, or preferences.