Blocker, Inc

question 67

Multiple Choice

Blocker, Inc.had $10, 000 of notes coming due on January 10, 2011.On January 5, 2011, the company used $2, 000 of excess cash to pay off part of the note.On January 8, 2011, a refinancing was completed.The $2, 000 payment was refunded and added back to the note balance, and the note was extended for another two years.On the December 31, 2010 balance sheet, how much of the $10, 000 note should be shown as current?

• A)$10, 000
• B)$ 0
• C)$ 8, 000
• D)$ 2, 000

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Definitions:

Predatory Pricing

is a competitive strategy where a company sets extremely low prices to eliminate competition and create a monopoly.

Monopolist

A monopolist is a single supplier in a market that has significant control over the price and supply of a particular good or service.

Market Entry

The act or strategy of bringing a new product or service to the market, facing various barriers to entry.

Dominant Strategy

In game theory, a strategy that is the best for a player regardless of the strategies chosen by other players.