Situation
Floyd Jones is the proprietor of the firm for which you work. Mr. Jones wants to acquire a manufacturing business. The business he wants to acquire, Sheraton Manufacturing, is insisting that Floyd pay not only for the identifiable net assets of the business, but also for “good will.” Floyd asks you: “What is good will?” Should I pay for it? If I should pay for it, how much should I pay?”
Task:
Write a Memo to Mr. Floyd Jones and give him a clear reply regarding the questions mentioned in the above situation.
SAMPLE MEMO
MEMORANDUM August 16, 2009
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