Which of the Following Is Not a Reason Arnold and Bowie

question 54

Multiple Choice

Which of the following is not a reason Arnold and Bowie cite for why multi-national enterprises should pay employees enough to satisfy basic needs?

• A) Doing so provides them with opportunities for moral development
• B) Doing so will benefit the local economy
• C) Doing so allows for the cultivation of self-esteem
• D) Doing so ensures the physical wellbeing and independence of employees
• E) Doing so contributes to the development of their rational capacities

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Definitions:

Constant Growth

A model assuming that a company's dividends will continue to grow at a constant rate indefinitely, used in valuing stocks.

Preferred Stock

A class of stock that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Annual Dividend

The total amount of money paid to shareholders from a company's profits over the course of a year per share of stock.

Floatation Costs

Expenses incurred by a company in issuing new securities, including underwriting fees and legal and administrative fees.