In which of the following does a customer respond to the functional quality of a service?
A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
B) Kathy tries out a new restaurant every week because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years because he is friendly and takes the time to listen to Bill.
D) Ray's mechanic charges high prices for service, but his work is good and worth the price.
E) Alex has no interest in theater, but goes often because her best friend loves plays.
C
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How does the pace of technological change affect businesses, both positively and negatively?
What will be an ideal response?
Balance sheet information for Sphinx Company at January 1, 2013, is summarized as follows:
Current assets $230,000 Liabilities $300,000 Plant assets 450,000 Capital stock $10 par 200,000 Retained earnings 180,000 $680,000 $680,000 Sphinx's assets and liabilities are fairly valued except for plant assets that are undervalued by $50,000. On January 2, 2013, Pyramid Corporation issues 20,000 shares of its $10 par value common stock for all of Sphinx's net assets and Sphinx is dissolved. Market quotations for the two stocks on this date are: Pyramid common: $28.00 Sphinx common: $19.50 Pyramid pays the following fees and costs in connection with the combination: Finder's fee $10,000 Legal and accounting fees 6,000 Required: 1. Calculate Pyramid's investment cost of Sphinx Corporation. 2. Calculate any goodwill from the business combination. What will be an ideal response?