How much is refundable when the license is transferable

Reference no: EM13239170

A local restaurateur whose business had been profitable for many years recently purchased a liquor license, giving her a legal right to sell beer, wine and spirits at the restaurant. The license cost $75,000. While the license is transferable, only $65,000 is refundable if the owner chooses not to use it. After selling alcoholic beverages for about a year, the owner realized she was losing dinner customers and that her formerly profitable restaurant was becoming a noisy, unprofitable bar. Subsequently, she spent $6000 on advertisements in local newspapers and magazines offering to sell the license for $70,000. After a long wait, she received one offer to purchase the license for $66,000. Would you recommend she accept the $66,000 offer? Why or why not? Explain.

Reference no: EM13239170

Questions Cloud

Compute a value for the molar solution of h3po3 : For H3PO3, Ka1 = 1.0x10- 2and Ka2 = 2.6x10-7. Calculate a value for the [H2PO3] in a 0.500 molar solution of H3PO3

Determine the maximum height of the ball : A ball is thrown toward a cliff of height h with a speed of 30m/s and an angle of 60? above horizontal, What was the maximum height of the ball

Why the diminishing returns has been encountered : Notice that average product (that is, output per worker) continues to rise after marginal product has fallen. Why How can it be that output per worker can rise after the point of diminishing returns has been encountered

Explain solution of sodium chloride to make a solution : What volume (in mL) of water must be added to a 1.133 M solution of sodium chloride to make a 52.4 mL of a 0.52024 M solution? Assume the volumes are additive.

How much is refundable when the license is transferable : A local restaurateur whose business had been profitable for many years recently purchased a liquor license, giving her a legal right to sell beer, wine and spirits at the restaurant. The license cost $75,000. While the license is transferable

Determine the focal length does the lens need : A slide projector needs to create a 86 cm high image of a 2.0 cm tall slide, What focal length does the lens need and How far should you place the lens from the slide

Explain what is the concentration of the chloride ion : What is the concentration (in M) of the chloride ion when 16 mL of a 0.625 M solution of sodium chloride is combined with 17.3 mL of a 0.551 M solution of iron(III) chloride to a final volume of 56.5 mL

Compute projected profit for the order quantities suggested : Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales equal 10,000 units, most likely case in which sales equal 20,000 units, and best case

Explain what is the half-life of the radioisotope : A sample of a radioisotope shows an activity of 999 disintegrations per minute due to beta decay. If after 1.10 years the activity is 952 disintegrations per minute, what is the half-life of this radioisotope

User Account

All Pages