Lois is selling her needlework shop to Simon. Simon is also purchasing the name of the business from Lois, all of the fixtures, and the inventory. Lois is essentially handing over the entire business, from top to bottom, to Simon, who is planning continuing what she had started. What are the essential elements of this business opportunity sale? A Bill of Sale

A. A Bill of SaleB. Financial StatementsC. GoodwillD. Both A and B

Question

Brooke Andrade

Business

21 March, 20:57

Lois is selling her needlework shop to Simon. Simon is also purchasing the name of the business from Lois, all of the fixtures, and the inventory. Lois is essentially handing over the entire business, from top to bottom, to Simon, who is planning continuing what she had started. What are the essential elements of this business opportunity sale? A Bill of Sale

A. A Bill of SaleB. Financial StatementsC. GoodwillD. Both A and B

+2

Answers (1)

Know the Answer?

Chyna · Answer 1

The essential elements of this business opportunity sale is the Goodwill.

Explanation:

The goodwill is an intangible asset, that is calculated deducting from the purchase price the market value of identifiable assets and liabilities.

By buying the name of the business Simon is expecting more income than if he buys machines and materiales and starts from zero a new needlework shop business.

Some examples of Godwill includes the value of a company's brand name, solid customer base, good customer relations and patents.