Market penetration achieves company growth by increasing sales of current products to current market segments without changing the product.
<h3>What is market penetration?</h3>
In economics, the term market penetration is used to denote the extent to which the people in the market would recognize and also have to buy a particular product. It is the successful selling of the product in the market by the produces to the consumers of the product.
Hence we can say that Market penetration achieves company growth by increasing sales of current products to current market segments without changing the product.
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Answer:
Explanation:
From the information povided:
(a) To compute the amount of goodwill paid by Chicago Corporation
Particulars Amount ($)
Accounts Receivable 100000
Inventory 170000
Plant & Equipment 400000
Land 90000
Customer List 4000
Trade Names <u> 16000</u>
NET ASSETS (A) <u>780000</u>
<u />
Current liabilities 76000
Non-current liabilities <u>160000 </u>
NET LIABILITIES (B) <u> 236000</u>
∴
PURCHASE CONSIDERATION (A -B) 544000
<u>Less:</u> Cash Paid <u> 580000</u>
GODWILL <u> 36000 </u>
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b)
In the books of Chicago Corporation, the Journal Entry to record the purchase of Naperville Company.
Account Name Dr. Cr.
Accounts Receivable A/C 100000
Inventory A/C 170000
Plant Equipment A/C 400000
Land A/C 90000
Customer List A/C 4000
Trade Names A/C 16000
Goodwill A/C 36000
Current liabilities A/C 76000
Non-Current Liabilities A/C 160000
Cash A/C 580000
c)
The minimum required amount of goodwill that Chicago can amortize by the end of 2020 is $3600.This is because the amortization can take place for a period of 10 years.
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Answer:
Incentive Theory
Explanation:
Reason behind would be because how many things you ate your brain and taste are processing that all at the same time making it taste like a completely different substance.