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.

---

Definitions:

Mortgage Bond

A bond for which the corporation pledges certain assets as security. All such bonds are written subject to an indenture.

Debenture

An unsecured bond; as such, it provides no lien against specific property as security for the obligation. Debenture holders are, therefore, general creditors whose claims are protected by property not otherwise pledged.

Premium

The amount by which the price of a financial asset exceeds its intrinsic value or the additional cost above the nominal value, such as in insurance or bonds.

Unsecured Bond

An unsecured bond, unlike a secured bond, has no collateral backing and relies solely on the issuer's creditworthiness for support.