Preference Utilitarianism Is Questionable as an Ethical Theory, Since It

question 30

True/False

Preference utilitarianism is questionable as an ethical theory, since it is possible for people to prefer or want just about anything.

---

Definitions:

Optimal Capital Structure

The best combination of debt and equity financing that maximizes a company's value while minimizing its cost of capital.

Debt Levels

The total amount of borrowing, represented as a ratio of debt to equity or a total dollar amount.

Excessive Risk

Engaging in financial activities that have a high chance of resulting in significant loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the degree to which a firm can increase profits by increasing sales.