AT&T,the Employer of the Three Scientists Credited with Inventing the Transistor

question 7

Multiple Choice

AT&T,the employer of the three scientists credited with inventing the transistor,

• A) reaped very few economic benefits from the invention.
• B) suffered economic losses because of the invention.
• C) earned a modest 10 percent return from the invention.
• D) earned an unprecedented 2,000 percent return from the invention.

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Definitions:

Book Value

The net value of an asset or liability according to its balance sheet account balance, taking into account the cost of the asset and accumulated depreciation.

Unrealized Gain

A profit that exists on paper resulting from an investment that has increased in value but has not yet been sold.

Commercial Substance

The notion that a transaction significantly alters the cash flows that the economic entity would otherwise expect.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or business activity.