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A University Must Decide If It Wants to Offer More

question 62

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A university must decide if it wants to offer more Internet-based classes. This decision involves answering the economic question of 'what to produce'.


Definitions:

Intercompany Profits

Profits that arise from transactions between companies within the same group, which are not realized from the perspective of the consolidated entity.

Consolidation Method

An accounting method used when a parent company includes the financials of its subsidiary into its own financial statements.

Unrealized Profits

Profits that have been earned on paper through an investment's increased value but have not yet been realized through a sale.

After-Tax Dollar Value

The net value of an investment or income after all applicable taxes have been subtracted.

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