Each of the following quotes was taken from a well-known business publication. In each case comment on
Question:
Each of the following quotes was taken from a well-known business publication. In each case comment on how the quote indicates an economic consequence.
a. “Profits of public companies have the greatest and most immediate effect on a com¬ pany’s stock ... As the company’s profits grow, so will the stock price.” (USA Today, October 23, 1990).
b. “Laventhol [a major public accounting firm] says it plans to file for Chapter 11 [bankruptcy].” (The Wall Street Journal, November 20, 1990).
c. “Critics say that [high-tech companies] are often tempted to inflate sales in order to keep their stocks buoyant and creditors at bay.” (The Wall Street Journal, Septem¬ ber 7, 1994).
d. “Some 70 witnesses plan to address the FASB in five days of public hearings that begin today [in response to a new accounting proposal] . . . One reason for the high anxiety: So many executives have so much at stake.” {The Wall StreetJournal, March 7, 1994).
e. “The basic drives of man are few: to get enough food, to find shelter and to keep debt off the balance sheet.” {Forbes, November 20, 1980).
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