Before It Was Publicly Known That IBM Was Going to Take

question 104

Multiple Choice

Before it was publicly known that IBM was going to take over Lotus Development, an IBM secretary told her husband, who told two co-workers, who told friends, relatives, business associates, and even a pizza delivery man. A total of 25 people received the information and traded on this tip to make a profit. These people were

• A) acting really smart.
• B) participating in insider trading.
• C) stealing from IBM.
• D) acting fairly.

Understand the criteria for classifying a lease as a capital or operating lease.

Understand the concept of opportunity cost and its significance in decision-making.

Grasp the principles of incremental cost and revenue, and their applications in managerial decisions.

Comprehend the distinction between sunk costs and relevant costs for decision-making.

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Definitions:

Oversimplify

To describe or explain something in a way that does not capture its complexity or nuances, often leading to a misleading or incomplete understanding.

Californians

Refers to the residents or natives of California, a state in the western United States.

Critical Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.

Newport Beach

A coastal city in Orange County, California, known for its large, boat-filled harbor, beaches, and upscale residential areas.