The Average Japanese P/E Ratio Was Reported as Between 40

question 35

Multiple Choice

The average Japanese P/E ratio was reported as between 40 and 100 in recent years while the average U.S. P/E ratio was 25. The reason for the higher Japanese P/E ratio has been partially explained by:

• A) growth opportunities over stated earnings.
• B) understated earnings and low interest rates.
• C) overstated earnings and low interest rates.
• D) understated earnings and overstated growth opportunities.
• E) low interest rates and greater growth opportunities.

Examine the impact of flexibility in the workplace on employee and employer relationships.

Understand the concept of the psychological contract between employers and employees.

Understand the concept of labor utilization and its adjustment mechanisms.

Recognize the influence of skill-based pay systems and flat organizational structures on flexibility.

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Definitions:

Punitive Damages

Financial compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses, intended to punish the defendant for egregious wrongdoing.

Punitive Damages

Monetary compensation awarded to an aggrieved party that exceeds simple compensation and is intended to punish the wrongdoer.

Anticipatory Breach

Anticipatory breach occurs when one party to a contract indicates, either verbally or through actions, that they will not fulfill their contractual obligations, leading to an early breach of contract.

Contractual Obligations

Duties that parties are legally bound to perform as per the terms of a contract.