-Lucy Works as a College Instructor for a Fixed Annual

question 231

Multiple Choice

-Lucy works as a college instructor for a fixed annual salary of $30,000. She is considering quitting this job and becoming a real estate broker. Lucy believes that as a realtor she has a 40 percent chance to make $60,000 per year and a 60 percent chance to make $25,000 a year. The figure above shows Lucy's total utility of wealth curve (U) . Lucy's expected utility from real estate brokerage is

• A) 117.
• B) 103.
• C) 110.
• D) 93.

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Definitions:

State Corporation Laws

Regulations established by individual states governing the formation, operation, and dissolution of corporations within their jurisdiction.

Comprehensive Income Items

Components of comprehensive income that represent all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Revaluation Surplus

The increase in value of an asset, over its previously recorded cost, reflected in the financial statements.

Share Premium

The amount received by a company over and above the face value of its shares when issuing them.