Exhibit 19-6

question 29

Multiple Choice

Exhibit 19-6.Three firms X,Y,and Z operate in the same industry,although their products have different features and are priced differently.The following table provides the prices and the quantities sold (in units) during the period 2000-2002. Refer to Exhibit 19-6.Compute the Laspeyres price index for 2001,using 2000 as the base year.

• A)95.64
• B)113.60
• C)104.56
• D)105.19

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Definitions:

Business Judgment Rule

A legal principle that protects company directors and officers when making business decisions that are informed and made in good faith.

Co-Determination

A practice where workers have a role in management of a company, often through participation in management boards or committees.

White Knight

A person or company making a favorable investment in or purchase of a company as a strategic defense against a hostile takeover.

Tender Offer

A public, open offer or invitation by a prospective acquirer to all shareholders of a publicly traded corporation to tender their stock for sale at a specific price during a certain time.