In Theory, Industries Can Manufacture and Sell Poisons, Bombs, and Weapons

question 45

Multiple Choice

In theory, industries can manufacture and sell poisons, bombs, and weapons of any type as long as there are consumers to buy them and they operate within a government that permits ________.

• A) welfare capitalism
• B) corporate capitalism
• C) socialist capitalism
• D) laissez-faire capitalism

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Definitions:

Common Size Statements' Analysis

A method of financial analysis that expresses each line item as a percentage of a standard value from the financial statements to allow for comparison.

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in financial analysis to predict future movements.

Lower Profitability

A situation where a company or business generates less profit or income compared to previous periods or compared to expectations.

Default Risk

The possibility that a borrower will fail to pay back a loan according to the agreed terms.