What Does Duska Mean When He Says That a Company

question 7

Multiple Choice

What does Duska mean when he says that a company is an instrument, not an end in itself?

• A) It's created to earn profit, and it doesn't have value in itself, like a person does.
• B) It's created to earn profit, so it deserves the loyalty of people who share the profit.
• C) It's created by people, so it deserves the same respect given to people.
• D) It's created with the goal of human fulfillment, so it has elevated moral status.
• E) It's created with the goal of human fulfillment, so it has lowered moral status.

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Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to pay its current liabilities without relying on the sale of inventory, calculated as (current assets - inventory) / current liabilities.

Marketable Securities

Financial instruments that can be easily bought or sold on public stock exchanges or other financial markets.

Accounts Receivable

Amounts due from customers for goods or services provided by a firm, yet to be paid.

Common-sized Income Statement

An income statement in which each line item is expressed as a percentage of sales revenue, allowing for easy comparison across periods or companies by standardizing the scale.