Recently Apple Computer Developed Apple's New ITunes Music Store, Which

question 71

Multiple Choice

Recently Apple Computer developed Apple's new iTunes Music Store, which offers more than 200,000 songs from five major record labels, for use with Apple's iPod and iMac. More than a million songs were downloaded the first week alone! In economic terms, CEO Steve Jobs helped convert capital and labor inputs into products consumers use. Any activity that results in the conversion of resources into products that can be used in consumption is

• A) not profitable.
• B) a start up venture.
• C) demand.
• D) production.

---

Definitions:

Reportable Segments

These are operational segments of a business that have distinct financial data available, and whose results are regularly reviewed by the entity’s chief operating decision maker.

Profits Test

A criterion used to evaluate the profitability of a business or investment, often assessing whether revenues exceed costs or expenses to determine financial viability.

Assets Test

A financial measure used to determine eligibility for certain government benefits based on the value of one's assets.

Profit Test

A determination to assess the viability and profitability of a project or investment by comparing costs against potential benefits.