Outlier Inc

question 14

Multiple Choice

Outlier Inc. hosts client accounts in servers located in foreign countries. The U.S. government issues a warrant to obtain e-mails related to a drug case from one of those accounts. Outlier refuses to comply. On the government's appeal, it is most likely that a court will order

• A)the owner of the account to "stand and deliver."
• B)Outlier to comply with the warrant.
• C)the government to abide by Outlier's refusal.
• D)the foreign countries to seize Outlier's servers.

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Definitions:

Cost Method

An accounting approach used for investments, where the investment is recorded at its acquisition cost and adjustments are made for dividends received and permanent declines in value.

Equity Method

An accounting technique used when a company invests in a firm and has significant influence over it, recognizing its share of profit or loss in its own financial statements.

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of an investee but is not control over those policies.

Investee's Board

The group of individuals elected by shareholders to oversee the management and make strategic decisions for a company in which investment has been made.