Use the Following Information to Answer the Question

question 37

Multiple Choice

Use the following information to answer the question. Here is a table recording the number of deaths for the top thirteen worst U.S. tornados since 1925. A histogram showing the distribution is also included.

-The worst tornado on record since 1925 is a tornado that went through Missouri, Illinois, and Indiana on March 18, 1925. It killed 689 people. Suppose that when this value was entered into a calculator or other software a mistake was made and it was entered as 1,689. Choose the statement that describes what affect this mistake will have on the mean and median.

• A)The median and the mean will not be affected by the error. Both measures of center are resistant to extreme values.
• B)The median will not be affected by the error, but the mean will be higher than it should be.
• C)Both the median and the mean will be higher than they should be.
• D)The median will be higher than it should be, but the mean will not be affected by the error.

Comprehend the concept of limited liability for shareholders and unlimited liability under specific circumstances.

Recognize the implications of corporate actions and the liability of a corporation for those actions.

Grasp the concepts of close and benefit corporations and their unique characteristics.

Understand the financial structure of a corporation, including stocks and the raising of capital.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Voting Shares

Shares of stock that grant the holder the right to vote on company matters at shareholders' meetings.

Acquisition

The process by which one company purchases most or all of another company's shares to gain control of that company.

New-entity Method

A consolidation method that treats the combined entities as a completely new reporting entity.