Suppose the Value of Human Life Is Calculated Using the Economic

question 64

Multiple Choice

Suppose the value of human life is calculated using the economic contribution they make to society. This is measured as their income-earning potential. This would imply:

• A) all human life is priceless
• B) the life of a retired person who works for a charity is worth less than a TV-celebrity
• C) racing car drivers regard their lives as more valuable than accountants
• D) everyone is equally valuable

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Definitions:

Consolidated Net Income

The total earnings of a company and its subsidiaries after taxes and interest, adjusted for minority interests.

Non-Controlling Interest

A minority stake in a subsidiary that is not owned by the parent company, reflected as a separate component of equity in the consolidated financial statements.

Equity Method

An accounting technique used to record equity investments to reflect the investor's share of the investee's earnings or losses.

Acquisition Differential

The difference between the purchase price of a company and the fair market value of its identifiable net assets at the time of acquisition.