Maria owns a Tasty Fries franchise, allowing her to operate up to 3 Tasty Fries locations in Vaughan. The franchise does not expire, but Maria expects she might sell her business after 10 years. A recent survey of Tasty Fries franchise owners found that most sold their locations after 15 years. Maria should 1. Start running her business, and then decide on a useful life for her franchise at the end of the first year 2. Not amortize her franchise, as it has an indefinite life span 3. Amortize her franchise over 10 years 4. Amortize her franchise over 15 years 5. None of the answers are correct
Maria owns a Tasty Fries franchise, allowing her to operate up to 3 Tasty Fries locations in Vaughan. The franchise does not expire, but Maria expects she might sell her business after 10 years. A recent survey of Tasty Fries franchise owners found that most sold their locations after 15 years. Maria should 1. Start running her business, and then decide on a useful life for her franchise at the end of the first year 2. Not amortize her franchise, as it has an indefinite life span 3. Amortize her franchise over 10 years 4. Amortize her franchise over 15 years 5. None of the answers are correct
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
(Multiple Choice Question)
Maria owns a Tasty Fries franchise, allowing her to operate up to 3 Tasty Fries locations in Vaughan. The franchise does not expire, but Maria expects she might sell her business after 10 years. A recent survey of Tasty Fries franchise owners found that most sold their locations after 15 years. Maria should
1. Start running her business, and then decide on a useful life for her franchise at the end of the first year
2. Not amortize her franchise, as it has an indefinite life span
3. Amortize her franchise over 10 years
4. Amortize her franchise over 15 years
5. None of the answers are correct
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