Say One Morning You Are Considering Whether to Take a Taxi

question 17

Multiple Choice

Say one morning you are considering whether to take a taxi cab or riding the train to work. Both mediums would cost you about $4, but you have already paid in advance for the train (since you pay a flat fee at the beginning of the month) . If the cab ride would take slightly less time than the train ride, and you are mostly concerned with the time it takes you to get to work, you should:

• A)take the train since you already paid for it.
• B)take the cab.
• C)be indifferent between either modes of transportation.
• D)find another way to get to work.

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Definitions:

Subsidiary Profits

Earnings generated by a subsidiary that contribute to the income and financial standing of its parent company.

Fair Value

Refers to the estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Issued Capital

The total value of a company's shares that have been sold to shareholders.

Tax Rate

is the percentage at which an individual or corporation is taxed by the government.