When  an  employee  who  works  at  McDonald's  headquarters  outside  Chicago  travels around the U.S. and observes franchises to see if they are acting in the best interests of McDonald's good name in terms of friendly service, cleanliness, and quality of food, this observer is acting as a(n): 

a. mystery shopper 

b. indirect observer 

c. mechanical observer 

d. scanner-based consumer panel

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From the following information, calculate the value of goodwill of the firm: (i) At three years purchase of Average Profit. (ii) At three years purchase of Super Profit. (iii) On the basis of capitalisation of Super Profit. (iv) On the basis of capitalisation of Average Profit. Information: (a) Average Capital Employed is Rs.6, 00, 000. (b) Net profit/(Loss) of the firm for the last three years ended are: 31st March, 2018 - Rs.2, 00, 000, 31st March, 2017 - Rs.1, 80,000 and 31st March, 2016 - Rs.1, 60,000 (c) Normal rate of Return in similar business is 10%. (d) Remuneration of Rs1,00,000 to partners is to be taken as charge against profit. (e) Assets of the firm (excluding goodwill, fictitious assets and non-trade investments) is Rs.7, 00, 000 whereas Partner's capital is Rs. 6, 00, 000 and outside Liabilities Rs.1,00,000. From the following information, calculate the value of goodwill of the firm: (i) At three years purchase of Average Profit. (ii) At three years purchase of Super Profit. (iii) On the basis of capitalisation of Super Profit. (iv) On the basis of capitalisation of Average Profit. Information: (a) Average Capital Employed is Rs.6, 00, 000. (b) Net profit/(Loss) of the firm for the last three years ended are: 31st March, 2018 - Rs.2, 00, 000, 31st March, 2017 - Rs.1, 80,000 and 31st March, 2016 - Rs.1, 60,000 (c) Normal rate of Return in similar business is 10%. (d) Remuneration of Rs1,00,000 to partners is to be taken as charge against profit. (e) Assets of the firm (excluding goodwill, fictitious assets and non-trade investments) is Rs.7, 00, 000 whereas Partner's capital is Rs. 6, 00, 000 and outside Liabilities Rs.1,00,000.

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Answer a mystery shopper A mystery shopper is an individual who is hired by a com... View the full answer