The Decision to Relocate the Factory to Mexico Was Difficult,but

question 21

Multiple Choice

The decision to relocate the factory to Mexico was difficult,but the shareholders overwhelmingly agreed with the move.The production manager and the other managerial staff were all offered comparable positions in Canada,but the production workers themselves were laid off.The manager argued that managerial staff should be treated differently than the production employees.The manager's decision violated the principle of ___________.

• A) self-interest
• B) personal virtues
• C) economic efficiency
• D) utilitarian
• E) universal rule ethic

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Definitions:

Underwriting

The process by which lenders and insurers evaluate the risks involved in insuring or lending to individuals or businesses and establish the terms of coverage or loans.

Capital Gains Yield

The price appreciation component of the total return on an investment, represented as a percentage of the initial investment cost.

Dividend Yield

The dividend per share divided by the price per share, indicating how much a company pays out in dividends each year relative to its stock price.

Constant-Growth Model

A method used to value a company's stock by assuming a constant rate of dividend growth, often used for companies with stable growth rates.