Microsoft and Its Operating System Are Often Cited as an Example

question 169

Multiple Choice

Microsoft and its operating system are often cited as an example of a company that grew into a monopolist through:

• A)ownership of a resource.
• B)patents.
• C)network externalities.
• D)large economies of scale.

---

Definitions:

Goodwill

An intangible asset reflecting the excess value of a business above its net tangible assets, often arising from acquisitions.

Consolidated Balance Sheet

A financial statement showing the combined assets, liabilities, and equity of a parent company and its subsidiaries.

Acquisition Method

An accounting technique used to consolidate the financial statements of a parent company and its subsidiaries.

Monetary Assets

Assets that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.