When the Group Decision Involves a Matter of Preference or Opinion

question 111

Multiple Choice

When the group decision involves a matter of preference or opinion, the most appropriate social decision scheme is:

• A)the truth-wins rule
• B)the two-thirds majority rule
• C)the majority-wins rule
• D)the consensus rule

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Definitions:

After-Tax Cost of Debt

The net cost of debt to a company after accounting for the tax deductions on interest expenses.

Market Rate of Interest

The prevailing rate of interest observed in the marketplace for securities of similar risk and maturity.