The Social Contract Ethical Theory

question 28

Multiple Choice

The social contract ethical theory:

• A)explains how to formulate values that permit a society to run smoothly.
• B)advocates a society in which people must fend for themselves.
• C)states that to live harmoniously,people must give up certain rights and freedoms.
• D)states that people cannot be forced to adhere to rules,or be punished for not doing so.

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Definitions:

Lease Payments

Lease payments are the regular payments made by a lessee to a lessor for the use of an asset, such as property or equipment, under a lease agreement.

Fair Value

A measurement of the price at which an asset could be bought or sold, or a liability settled, in a current transaction between willing participants in the market.

Economic Life

The estimated period over which an asset is expected to be economically usable by one or more users, with profitability considered.

Residual Value

The estimated value that an asset will realize upon the end of its useful life, often used in calculating depreciation.