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"If the Government Seeks to Rule by Decree, and to Maintain

question 34

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"If the government seeks to rule by decree, and to maintain order by the use of punishment, the people will seek to evade punishment and have no sense of shame. But if the government leads by virtue and governs through the rules of propriety, the people will feel shame and seek to correct their mistakes." This statement reflects the ideas of


Definitions:

Semiannual Interest

Interest that is calculated and paid twice a year, often used in bond and loan agreements.

Discount on Bonds Payable

The difference by which the bond's face value exceeds its selling price, reducing the cost to the issuer.

Straight-Line Method

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest payments on outstanding debt.

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