(Consider This) a Primary Advantage of Uber to Government-Regulated Taxis

question 55

Multiple Choice

(Consider This) A primary advantage of Uber to government-regulated taxis is that

• A) Uber riders are guaranteed lower fares.
• B) Uber drivers are required to meet more stringent safety standards.
• C) Uber’s dynamic pricing avoids the inefficiencies caused by regulated taxi fares.
• D) the greater monopoly for rides increases profits for both Uber and regular taxi drivers.

Identify the role of the tax rate in determining the WACC.

Understand the use and importance of the SML (Security Market Line) approach in estimating the cost of equity.

Acknowledge the impact of flotation costs on project financing.

Differentiate between the concept of cost of capital and opportunity cost.

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Definitions:

CPA Australia

CPA Australia is a professional accounting body in Australia that provides education, training, technical support, and advocacy for its members.

Certified Institute

An organization that has been formally recognized to hold authority or expertise in a particular field or profession.

Strategy

A plan of action or policy designed to achieve a major or overall goal, typically involving resource allocation.

Long-Term Objective

A strategic goal that an organization aims to achieve over an extended period, typically beyond one year, to guide its direction and decisions.