Data Inc Adheres Strictly to the Goal of Maximizing Profits

question 33

Multiple Choice

Data Inc. adheres strictly to the goal of maximizing profits. Data will benefit from ethical behavior

• A)if customer service is good.
• B)if its owners are happy with the revenue.
• C)under no circumstances.
• D)if it efficiently allocates scarce resources.

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Definitions:

Cumulative Preferred Stockholder

A cumulative preferred stockholder is an investor who owns preferred shares that accumulate unpaid dividends, ensuring they are paid out before any dividends on common stock.

Dividends in Arrears

Dividends on preferred stock that have been declared but not yet paid to shareholders.

Nonparticipating

Typically refers to insurance policies or preferred stock where the holders do not have the right to share in certain dividends beyond the specified rate or in the surplus assets.

Dividends

Payments made by a corporation to its shareholder members. It is the share of profits and retained earnings that the company pays out to its shareholders.