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Scenario 6-3 "Consumerism Is a Pattern of Behavior That Helps to Destroy

question 41

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Scenario 6-3
"Consumerism is a pattern of behavior that helps to destroy our environment, personal financial health, the common good of individuals and human institutions" begins the first page on a World Wide website entitled "Overcoming Consumerism." It continues, "This site details ways that you can help defeat consumerism, save money, work less and lead a more satisfying and environmentally benign life while helping to restore the self-sufficiency of your community." (http://www.verdant.net/)
As one travels from page to page in the site, advertising is often implicated as a source of the movement toward consumerism. Many of the same criticisms of advertising found in the site were outlined in the textbook.
-(Scenario 6-3) The writers of "Overcoming Consumerism" believe that as consumerism grows, people will buy anything and everything. This reduces the incentive for companies to manufacture quality, long-lasting products. On the other hand, according to the textbook, a proponent of advertising might argue that

Definitions:

Accumulated Other Comprehensive Income

The cumulative effect of other comprehensive income items, which is reported separately in the “Stockholders’ equity” section of the balance sheet.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of shareholders.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period of time, leading to the net profit or loss for that period.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.