A 2000 Ruling by a Federal Court Found That Microsoft

question 217

Multiple Choice

A 2000 ruling by a Federal court found that Microsoft, with its very popular Windows operating system,

• A) controlled 95 percent of the PC operating system market and thus was an illegal monopoly.
• B) used anticompetitive practices to maintain and broaden its monopoly power.
• C) illegally lobbied members of Congress to obtain monopoly patents.
• D) conspired to fix prices on its Windows software.

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Definitions:

FOB Shipping

Free On Board Shipping, a term used in shipping agreements to specify which party (buyer or seller) pays for shipping costs and when the ownership of the goods transfers.

Import Duties

Import duties are taxes imposed by a government on goods imported into a country, often used to protect domestic industries and raise revenue.

Merchandise Cost

Merchandise cost is the total expense incurred to purchase goods for resale, including the purchase price, shipping, handling, and import duties.

Gross Profit Method

A technique to estimate the amount of ending inventory and cost of goods sold by using the gross profit margin.