Tiger Woods – does his image taint his advertising sponsors?

Everyone has been reading about the extracurricular activities of Tiger Woods lately, one of his advertisers has pulled a product line with his name on it, others have stopped all current advertising campaigns with Tiger Woods. If they were to use Tiger Woods in their current advertising, does that mean that they support or approve/endorse of his conduct? If they continue on sponsoring him, does that mean that they pretend that it never happened?

In the end, in my opinion, this will blow over and this will be forgotten. Tiger Woods may be the greatest golfer of all times. As long as he will eventually be able to go back to the golf circuit and continue winning, he will continue to draw crowds. In reality, are the golf fanatics really concerned about his indiscretions of his personal life. Up until recently, no one knew very much about his personal life.

He kept that very private and we now know why. If his personal life did not matter before, will it matter in the future? Yes, it will come out that there are many people involved, yes, that will affect his ability to be a public figure in the short term but eventually, this will all be available for the public to scrutinize, then what. The public will go back to admire his golf talents and will not care about his personal life again.

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Why is normalized income so important when selling a business?

When you sell a business, everyone wants to know how much money does it make? Although that may seem like a very straight forward question, the answer is not that straight forward. Private business owners typically put in many personal expenses through their business, they may income split with family members, they may put a variety of other expenses through that will not be a required expense for the new owner. The definition of normalized earnings is the earnings that should be enjoyed by the new business owner after he/she acquires the business?

The items which are considered normalized earnings are often disputed by the buyer and seller because the value of the business is dependent upon the definition of profits/normalized earnings of the business. What is an extra expense to one person may be normal to another. Clearly paying a salary to a family member who is not working in the business is not a normal expense and would be added back.

I have seen people say that I went on a business trip and say it was personal. They claim that they saw one client in another city then continued on a holiday – is that personal or business? I knew of another who was a member of a buying consortium and the members would meet once a year in their respective countries. They discussed business for an hour or two, was the trip business or personal?

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