One Problem with Journalists Assuming the Underlying Value of Responsible

question 15

Multiple Choice

One problem with journalists assuming the underlying value of responsible capitalism is that .

• A) it can lead to a naïve belief that businesses compete to increase the prosperity of all instead of maximizing their own profits
• B) it can lead to a naïve belief that businesses are always evil and put their interests over the
• C) journalists understand too much about the financial issues related to the companies that employ them
• D) it can lead to too much critical coverage of the oligopolistic nature of today's economy
• E) None of the above options is correct.

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Definitions:

Diluted EPS

Earnings per share calculated using the potential conversion of dilutive securities, showing the possible decrease in earnings per share if these were converted.

Convertible Bonds

Bonds that can be converted into a predetermined number of shares of the issuing company's stock at certain times during their life, usually at the discretion of the bondholder.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.

Journal Entry

A record in accountancy that captures the financial transactions of a company, showing the accounts affected and in which direction (debit or credit).