Nate Smith and Darla Jones have written a computer program for a video game that may rival PlayStation and Xbox. They need additional capital to market the product, and they plan to incorporate their business. Smith and Jones are considering alternative capital structures for the corporation. Their primary goal is to raise as much capital as possible without giving up control of the business. Smith and Jones plan to receive 50,000 shares of the corporation’s common stock in return for the net assets of their old business. After the old company’s books are closed and the assets are adjusted to current market value, Smith’s and Jones’ capital balances will each be $25,000. The corporation’s plans for a charter include an authorization to issue 10,000 shares of preferred stock and 500,000 shares of$1 par common stock. Smith and Jones are uncertain about the most desirable features for the preferred stock. Prior to incorporating, Smith and Jones are discussing their plans with two investment groups. The corporation can obtain capital from outside investors under either of the following plans: Plan 1. Group 1 will invest $80,000 to acquire 800 shares of 6%,$100 par nonvoting, preferred stock. Plan 2. Group 2 will invest $55,000 to acquire 500 shares of$5, no-par preferred stock and $35,000 to acquire 35,000 shares of common stock. Each preferred share receives 50 votes on matters that come before the stockholders. Assume that the corporation is chartered. Journalize the issuance of common stock to Smith and Jones. Debit each person’s capital account for its balance. Journalize the issuance of stock to the outsiders under both plans. Assume that net income for the first year is$120,000 and total dividends are $30,000. Prepare the stockholders’ equity section of the corporation’s balance sheet under both plans. Recommend one of the plans to Smith and Jones. Give your reasons. (Challenge)

Video Games In Exercise, use the data in the following table, which shows the results of a survey of 2000 gamers about their favorite home video game systems, organized by age group. If a survey participant is selected at random, determine the probability of each of the following. Round to the nearest hundredth.

$$\begin{array}{|l|c|c|c|c|} \hline & \begin{array}{c}\text { Sony Play- } \\ \text { station 3 }\end{array} & \begin{array}{c}\text { Microsoft } \\ \text { Xbox 360 }\end{array} & \begin{array}{c}\text { Nintendo } \\ \text { DS }\end{array} & \begin{array}{c}\text { Sega } \\ \text { Dreamcast }\end{array} \\ \hline \mathbf{0 - 1 2} & 63 & 84 & 55 & 51 \\ \hline \mathbf{1 3 - 1 8} & 105 & 139 & 92 & 113 \\ \hline \mathbf{1 9 - 2 4} & 248 & 217 & 83 & 169 \\ \hline \mathbf{2 5 +} & 191 & 166 & 88 & 136 \\ \hline \end{array}$$

The participant prefers Nintendo DS, given that the person is between the ages of 13 and 24 .

Talk to a family with a child under 13 at home. Interview both the parents and the child, but interview the child separately. Determine the influence of each family member on major toys, such as the Xbox for the child's use. In addition, determine what method(s) of conflict resolution is (are) used.

Solve the problem below. Show your work. Dani is making punch for a family picnic. She adds 16 fluid ounces of orange juice, 16 fluid ounces of lemon juice, and 8 fluid ounces of lime juice to 64 fluid ounces of water. How many 8-ounce glasses of punch can she fill?

Assume that it costs Microsoft approximately $C(x)=14,400+550 x+0.01 x^{2}$ dollars to manufacture x Xbox 360s in a day. How many Xboxes should be manufactured in order to minimize average cost? What is the resulting average cost of an Xbox? (Give your answer to the nearest dollar.)

People who have home gaming systems, such as WiirM, PlaystationTM, and XboxTM, are well aware of how quickly they need to replace the batteries in the remote controls. A consumer agency made the decision to test three popular alkaline battery manufacturers to see if their average lifespan for these remotes varied. Ten sets of batteries were put in the remote controls for each of the three brands, and users played video games until the batteries ran out. Some of the results from the analysis are contained in the following ANOVA table.

$$\begin{array}{llll|l} \hline \begin{array}{l} \text { Source of } \\ \text { Variation } \end{array} & \begin{array}{c} \text { Degrees of } \\ \text { Freedom } \end{array} & \begin{array}{c} \text { Sum of } \\ \text { Squares } \end{array} & \begin{array}{c} \text { Mean } \\ \text { Square } \end{array} & \begin{array}{l} \text { Value of the } \\ \text { Test Statistic } \end{array} \\ \hline \begin{array}{l} \text { Between } \\ \text { Within } \end{array} & 22388.25 & 25711.60 & F== \\ \hline \text { Total } & & & \\ \hline \end{array}$$

Assume that the three populations have identical variances and a normal distribution. a. Complete the ANOVA table by locating the missing values. b. What are the proper null and alternative hypotheses for this analysis? What is your assessment of the equality of the three population means using $\alpha=.05$?

Two computer science majors, Trent and Xavier, have an idea for a new video game, which they propose to call Hallowed. They form a business and begin developing their idea. Several months later, Trent and Xavier run into a problem with their design and consult a friend, Brad, who is an expert in designing computer source codes. After the software is completed but before Hallowed is marketed, a video game called Halo $2$ is released for the Xbox and Playstation systems. Halo $2$ uses source codes similar to those of Hallowed and imitates Hallowed's overall look and feel, although not all the features are alike. Using the information presented in the chapter, answer the following questions.

Suppose that Trent and Xavier discover that Brad took the idea of Hallowed and sold it to the company that produced Halo $2$ . Which type of intellectual property issue does this raise?

Two computer science majors, Trent and Xavier, have an idea for a new video game, which they propose to call "Hallowed." They form a business and begin developing their idea. Several months later, Trent and Xavier run into a problem with their design and consult with a friend, Brad, who is an expert in creating computer source codes. After the software is completed but before Hallowed is marketed, a video game called Halo $2$ is released for both the Xbox and Playstation $3$ systems. Halo $2$ uses source codes similar to those of Hallowed and imitates Hallowed's overall look and feel, although not all the features are alike. Using the information presented in the chapter, answer the following questions.

If Trent and Xavier had obtained a business process patent on Hallowed, would the release of Halo $2$ infringe on their patent? Why or why not?

Two computer science majors, Trent and Xavier, have an idea for a new video game, which they propose to call "Hallowed." They form a business and begin developing their idea. Several months later, Trent and Xavier run into a problem with their design and consult with a friend, Brad, who is an expert in creating computer source codes. After the software is completed but before Hallowed is marketed, a video game called Halo $2$ is released for both the Xbox and Playstation $3$ systems. Halo $2$ uses source codes similar to those of Hallowed and imitates Hallowed's overall look and feel, although not all the features are alike. Using the information presented in the chapter, answer the following questions.

Would the name Hallowed receive protection as a trademark or as trade dress?

In Exercise mentioned, you analyzed data from a study that compared adult gamers with teen gamers with respect to the devices on which they play. The study surveyed 1063 adult gamers and 1064 teen gamers. For the adults, 54% played on game consoles (Xbox, PlayStation Wii, etc.), while 89% of the teen gamers played on game consoles. Your analysis in Exercise mentioned focused on the comparison of two proportions. Use these data to construct a two-way table for analysis.

use the data in the earlier table, which shows the results of a survey of 2000 gamers about their favorite home video game systems, organized by age group. If a survey participant is selected at random, determine the probability of the following. Round to the nearest hundredth.

The participant prefers the Playstation 3 system.

Sony Electronics produces a wide variety of electronic products for the consumer marketplace, such as laptop computers, PlayStation game consoles, and tablet computers. What type of products would these be considered in the Supply Chain Uncertainty Framework?

Crossing the Atlantic Ocean in a sailboat is a prestigious feat that many sailors attempt. Some of the speed records for the west-to-east trip from New York to England are shown in the table.

$$\begin{array}{|c|} \hline \begin{array}{} \text{Transatlantic Sailing Records (New York to England)} \end{array}\\ \hline \begin{array}{c|c|c|c} \text{Yacht} & \text{Year} & \text{Country} & \text{Average Speed (knots)}\\ \text{Atlantic} & 1905 & \text{USA} & 10.02\\ \text{Royal II} & 1986 & \text{France} & 15.47]] \text{Jet Services V} & 1990 & \text{France} & 18.62\\ \text{PlayStation} & 2001 & \text{}\text{USA} & 25.78 \end{array}\\ \hline \end{array}$$

Graph the distance in nautical miles that the PlayStation could cover over a period from $0$ to $48$ hours. The sailing distance from New York to Florida is $947$ nautical miles. Use your graph to estimate how long it would take the PlayStation to make this trip.

Gaming consoles, such as Xbox One and PlayStation 4, do not need an operating system.

• True
• False