Electra Wants to Purchase a Laptop for Use in Her

question 18

Multiple Choice

Electra wants to purchase a laptop for use in her MBA program so she can work on assignments and surf the web while the professor drones on endlessly. After consulting with her colleagues, she chooses the dimensions of cost, weight, processor speed, and touchscreen capability as critical to her long term success and amusement. She evaluates four different laptops and rates their performance on each criterion on a scale from 1 (poor) to 5 (excellent) . She is struggling with her assessment of the importance of the Cost criterion. As an avid lottery player, she is pretty sure that tonight's drawing will mean at least two numbers match on the ticket she bought on the way to class and it could possibly mean a three-number match. Given her uncertainty, she would like to choose the laptop that performs the best overall across the entire spectrum of possibilities of the outcome of tonight's lottery. Which would you recommend? $$\begin{array} { | l | c | c | c | c | c | } \hline { \text { Dimension } } & \text { Importance } & \text { Sir Face } & \text { Toybook Air } & \text { Knockoff } & \text { High Priced } \\\hline \text { Weight } & 3 & 4 & 4 & 3 & 5 \\\hline \text { Speed } & 5 & 4 & 4 & 4 & 3 \\\hline \text { Cost } & ? ? & 2 & 4 & 5 & 1 \\\hline \text { Touchscreen } & 1 & 5 & 2 & 3 & 3 \\\hline\end{array}$$

• A)High Priced
• B)Knockoff
• C)Toybook Air
• D)Sir Face

Recognize ethical considerations in work environment decisions and their impact on stakeholder relationships.

Understand the relationship between a firm's operational capacity and its financial variables.

Recognize the impact of capital intensity and asset management efficiency on a firm's financial planning.

Distinguish between variable and fixed expenses in financial forecasting.

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Definitions:

Preferred Stock

Preferred stock is a type of stock that grants holders certain priorities over common stock, including dividends and asset liquidation, often without voting rights.

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Retained Earnings(Deficit)

The accumulated net income of a company minus any dividends paid to shareholders, reflecting the company's earnings reinvested in its operations.

Stock Split

An action by a company to increase the number of outstanding shares by dividing each share, which typically reduces the share price but does not change the overall market capitalization.