If You Are Most Concerned About Generating the Highest Profits

question 33

Multiple Choice

If you are most concerned about generating the highest profits margins to ensure your stockholders are getting the highest return on their investment, you would be using the _________ approach as an ethical framework.

• A)common good
• B)fairness
• C)rights
• D)utilitarian

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Definitions:

Short-Term Debt

Debt obligations that are due for repayment within one year.

Operating Cycle

The average period of time between the acquisition of inventory by a business and the receipt of cash from sales of the inventory, encompassing both the purchase of inventory and the collection of receivables.

Interest Expense

The cost incurred by an entity for borrowed funds.

Current Liabilities

Obligations or debts that a company must pay within one year or within its normal operating cycle if longer.