High Inside Ownership at Microsoft Reflects the Company's

question 38

Multiple Choice

High inside ownership at Microsoft reflects the company's:

• A) low amenity potential.
• B) low quality-control potential.
• C) regulatory potential.
• D) high quality-control potential.

---

Definitions:

Straight-line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Projected Cash Flows

Estimated cash movements over a future period, based on expected income and expenses.

NPV

Net Present Value; the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Operating Working Capital

Current assets minus current liabilities, reflecting the short-term liquidity of a business.