A Manager May Comply with Both the Practical Imperative and the Golden

question 67

Multiple Choice

A manager may comply with both the practical imperative and the Golden Rule by asking if she would change places with the person affected by the contemplated action.This is known as the:

• A) press test.
• B) universalizability test.
• C) others test.
• D) reversibility test.

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Definitions:

NPV

Net Present Value, a calculation used to assess the profitability of an investment or project, considering the time value of money.

Target Company

A firm that another company seeks to acquire.

Cost of Equity

The return that shareholders require for investing in a company's equity, representing the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.

Acquiring Firm

A company that gains control over another company by purchasing its shares or assets.