Perhaps the Most Widely Recommended Principle for Ethical Behavior Is

question 39

Multiple Choice

Perhaps the most widely recommended principle for ethical behavior is to do what

• A) is best for yourself.
• B) will yield the most profits.
• C) you would want others to do for you.
• D) will reduce product prices.

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Definitions:

Payback

The period of time required to recover the cost of an investment.

Liquidity

The simplicity of transforming an asset or security into immediate cash without impacting its market value.

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows (both positive and negative) from a particular project or investment equal to zero.

Required Return

The smallest percentage of annual gain required from an investment to attract individuals or corporations to fund a certain project or venture.