Which of the Following Accurately Explains Differences Between the Free

question 10

Multiple Choice

Which of the following accurately explains differences between the free market ethical perspective and utilitarianism?

• A)While both the free market ethical perspective and utilitarianism are both concerned with the well-being of shareholders, utilitarianism considers the well-being of shareholders along with other stakeholders.
• B)The free market ethical perspective focuses on shareholder well-being, with utilitarianism does not consider the effects on shareholders.
• C)Following the law is not required by the free market ethical perspective, but it is required by utilitarianism.
• D)While the free market ethical perspective is concerned with making a profit, utilitarianism does not consider profit as a desirable outcome.

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Definitions:

Shareholders' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owners' claim on the company's assets.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.

Consolidated Financial Statements

These statements combine the financial information of a parent company and its subsidiaries, presenting the financial performance and position as if they were a single entity.

Impairment

The decrease in the recoverable value of an asset below its carrying amount, leading to a write-down value in the balance sheet.