Bill Gates Dropped Out of College and Founded Microsoft

question 1

Multiple Choice

Bill Gates dropped out of college and founded Microsoft. His opportunity cost of continuing to attend college was

• A) tuition, the cost of books, and room and board.
• B) tuition, the cost of books, and a low-paying job.
• C) tuition, the cost of books, and the income from his Microsoft pursuits.
• D) only the income from his Microsoft pursuits.

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Definitions:

Amortized

Pertains to gradually reducing the cost of an intangible asset through scheduled, predetermined payments over its useful life.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, representing the total value that shareholders would theoretically receive if a company was liquidated.

Noncontrolling Interest

A portion of equity in a subsidiary not attributable, directly or indirectly, to the parent company, reflecting minority shareholders' claim on assets and earnings.

Markup

The difference between the cost of a good or service and its selling price, represented as a percentage of the cost.