Purchased goodwill should
a. be written off as soon as possible against retained earnings.
b. be written off as soon as possible as an extraordinary item.
c. be written off by systematic charges as a regular operating expense over the period benefited.
d. not be amortized.
Answer: d. not be amortized.
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Which of the following organizations is likely to use the multiple-factor index method to estimate the market potential?
A) a firm that manufactures auto parts B) a firm that provides facility management services to large offices C) a company that provides Web site development services for small businesses D) a company that manufactures diagnostic machines for hospitals E) a firm that manufactures fashionable clothes for teenagers
Rationalizing the value chain means sourcing components in countries that have what advantage?
A) cheapest shipping B) lowest cost C) favorable markets D) facilitators