Johann Has an IQ of 104 and Avi Has an IQ

question 187

Multiple Choice

Johann has an IQ of 104 and Avi has an IQ of 115. Johann has a much higher level of both interpersonal and kinesthetic intelligence than Avi. They are both trying to listen to their psychology lecture at the same time that someone is sitting outside the room playing an iPod loudly. You might expect that Johann will:

• A) pay better attention to the lecture than Avi
• B) pay worse attention to the lecture than Avi
• C) divide his attention between the lecture and music better than Avi
• D) divide his attention between the lecture and music worse than Avi

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Definitions:

Tax Liability

The total amount of tax owed to the tax authorities by an individual, organization, or company at any given time.

Optimal Size

Optimal size is the most efficient scale of operation for a firm where it can minimize its cost and maximize its profitability.

Synergy

The concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.