Do corporate decisions that increase the value of the firm's equity benefit society as a whole?
A) Yes, as long as the value of the firm's equity increases, society is better off.
B) Yes. as long as the increase in the value of the firm's equity does not come at the expense of others.
C) No, any gain in the value of the firm's equity is always less than the cost to society.
D) No, any gains in the value of the firm's equity are perfectly offset by societal costs.
Question 2
Based on the information in Table 3-1, assuming that no assets were disposed of during 2010, the
amount of depreciation expense was
A) 375. B) 500. C) 3,500. D) 2,500.
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