Ethics at Delectables Part A The narrative asserts that “if expenses rise too much, the value of Delectables ’ stock will go down. The company will lose market share…” The chain of logic, however, seems awry. First, the value of a company’s stock is not a primary driver of a company’s market share. Second, rising expenses might not negatively affect the stock price, particularly if the “expense” is actually money that is invested in capital improvements. Using generally accepted accounting principles, these improvements are depreciated, or expensed, over time – usually a period of many years – so that the bulk of the money spent on upgraded equipment will be seen as an asset for quite some time. That the company is hurting financially is...The end:
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