Which of the Following Is a Drawback of the Utilitarian

question 65

Multiple Choice

Which of the following is a drawback of the utilitarian approach to business ethics?

• A)It omits the consideration of justice.
• B)It fails to consider the benefits,costs,and risks of a course of action.
• C)It advocates moral imperialism and ethnocentrism.
• D)It overemphasizes the significance of maximization of stockholder wealth.
• E)It recognizes that actions have multiple consequences.

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Definitions:

Cash Coverage Ratio

The Cash Coverage Ratio measures a company's ability to cover its debt obligations with its operating cash flow, thus indicating its financial health and liquidity.

Depreciation Expense

The allocated amount of an asset's cost expensed over its useful life to represent wear and tear, obsolescence, or age.

EBIT

Earnings Before Interest and Taxes captures a business's earning power by including all costs except those related to interest and taxes.

Times Interest Earned

A metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.