Scenario 5.3: Wanting to Invest in the Computer Games Industry, You Select

question 130

Multiple Choice

Scenario 5.3:
Wanting to invest in the computer games industry, you select Whizbo, Yowzo and Zowiebo as the three best firms. Over the past 10 years, the three firms have had good years and bad years. The following table shows their performance:

-Refer to Scenario 5.3. Based on the 10 years' past performance, what is the probability of a good year for Zowiebo?

• A) 30/31
• B) 1/31
• C) 0.9
• D) 0.1

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Definitions:

Measurement (Cost) Principle

An accounting principle that states assets and liabilities should be recorded at their original cost and factually supported values.

Acquired Building

A building that has been purchased or obtained by a company or organization through purchase or other means of acquisition.

Appraised

The act of determining the value of an asset, typically by a professional appraiser, based on its characteristics and the market conditions.

Malpractice

Failure by a professional to meet the standards of conduct, performance, or ethics in their job, often resulting in harm to clients or patients.