Refer to the Data Provided in Table 17 -Refer to Table 17

question 93

Multiple Choice

Refer to the data provided in Table 17.2 below to answer the following question(s) . The table shows the relationship between income and utility for Sue.
Table 17.2
$$\begin{array} { | c | c | } \hline \text { Income } & \text { Total Utility } \\\hline \$ 0 & 0 \\\hline \$ 20,000 & 20 \\\hline \$ 40,000 & 40 \\\hline \$ 60,000 & 60 \\\hline \$ 80,000 & 80 \\\hline\end{array}$$
-Refer to Table 17.2. Sue earns $40,000 annually. She has the opportunity to bet her entire salary on the upcoming super bowl. If Sue takes the bet, she will pick the Patriots. She believes that the Patriots have a 50-50 chance of winning the game. If the Patriots win, Sue will win $81,000 but if they lose she loses her entire salary ($0) . Will Sue take the bet?

• A) yes
• B) no
• C) maybe
• D) indeterminate from the given information

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Definitions:

Shareholder's Derivative Suit

A legal action initiated by a shareholder on behalf of the corporation against a third party, often the corporation's executives or directors, for mismanagement or fraud.

Corporate Directors

Individuals elected by shareholders to oversee the management of a corporation and ensure that it is being run in accordance with their interests.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, carrying on business, incurring liabilities, and suing or being sued.

Cash Tender Offer

A type of takeover in which the aggressor corporation offers to pay the target shareholders cash for their stock.