George Is Considering Buying Shares of Intel

question 156

Multiple Choice

George is considering buying shares of Intel. If the company does well, he will gain $100, but if the company does poorly, he will lose $100. George is risk averse, so for George the magnitude of the pain of losing $100 will ________ the pleasure of gaining $100.

• A) equal
• B) be less than
• C) be greater than
• D) None of the above answers are correct because we cannot compare the pain of losing to the pleasure of gaining.

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Definitions:

Royalties

Payments from the licensee to the licenser consisting of a percentage of what is earned from selling such products and services.

Intellectual Infrastructure

Encompasses the knowledge resources, institutions, and networks that support the creation, dissemination, and utilization of information and innovation.

Technological Factor

Technological factor relates to the impact that advancements and innovations in technology have on a business's operations, strategies, and competitiveness in the marketplace.

Internal Management

The administration and organization of a company's internal affairs, including human resources, operations, and policies.