Question 5 (10 points) The amount paid for goodwill should be small enough to be

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Question 5 (10 points)

The amount paid for goodwill should be small enough to be recovered with new profits in a reasonably short time period.

Question 5 options:

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Question 6 (10 points)

When running a family business, there are four overlapping perspectives on its operations: family, management, ownership, and sales.

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Question 7 (10 points)

All of the following are options for getting started as a business owner except

Question 7 options:

Inheriting a family business

Starting your own

Buying an existing business

Managing a joint venture

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Question 8 (10 points)

A list of liabilities of an existing business would include

Question 8 options:

Inventory

list of account payables

Account Receivables

Liens of creditors against assets

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Explanation / Answer

Queston 5

The correct answer is true.

Goodwill is the cost that is ioncurred when a new business is acquired by the company. This is calculated by subtracting fair market value tangible assets, intangible assets and liabilities from cost of purchase of the business. So, this amount should be samll so that it can be easily recovered with profit from new business in short period.

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