Use the Following to Answer Questions: Table: Cecil and Lou

question 176

Multiple Choice

Use the following to answer questions: Table: Cecil and Lou $$\begin{array} { c c c } \hline \text { Society } & \text { Cecil's income } & \text { Lou's income } \\\hline \text { A } & \$ 100,000 & \$ 10,000 \\\text { B } & 90,000 & 90,000 \\\text { C } & 50,000 & 250,000 \\\text { D } & 80,000 & 160,000 \\\hline\end{array}$$
-(Table: Cecil and Lou) Refer to the table. This society's utility (U) is given by the equation U = 0.01 × (Cecil's income) + (Lou's income) ^0.5. Which society is the LEAST preferred based on the principles of utilitarianism?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Amortizable Intangible Assets

Intangible assets subject to the process of amortization, spreading the cost over their useful life.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net tangible and identifiable intangible assets.

Expense

Economic costs that a business incurs through its operations to earn revenue, which are recorded on the income statement.

Construction Loan

A short-term loan used to finance the building of a property or real estate project.