The Constant Effort to Maximize Profits, Which Is the Basic

question 55

Multiple Choice

The constant effort to maximize profits, which is the basic tenet of capitalism, promotes poverty in this/these way(s) :

• A) Employers are constrained to pay their workers the least possible in wages and benefits.
• B) It is beneficial for the ownership class to maintain surplus of laborers because the surplus depresses wages.
• C) Employers make investment decisions based on what will maximize profit and without regard for their employees.
• D) All of the above

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Definitions:

Allocation of Shares

The process of distributing shares of stock among investors.

Oversubscribed

A situation in which the demand for an IPO or a new issue of securities exceeds the number of shares available.

Rights Offering

A method by which a company raises capital through issuing new shares to existing shareholders at a predetermined price for a fixed period.

Ownership Percentage

Ownership percentage refers to the fraction or percentage of a company that is owned by a particular shareholder or group of shareholders.