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Which accurately describes a principle argued by adam smith to drive a free market economy?
A) Adam Smith and Frederic Engels promoted socialism in which government owns manufacturing
B)Adam Smith co-wrote the Communist Manifesto with Karl Mark, which promoted communism.
C)Adam Smith argued for a traditional economy in which history and tradition determine manufacturing
D)Adam Smith argued for a laissez-faire economy that is free of government intervention.

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Vaishnavi Kanukurti
Vaishnavi KanukurtiLv10
25 Sep 2020

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Discussion Questions These questions stem from the Class Discussion Questions you will be anwering in the Discussion Board. Think about the questions and how they relate to the financial management principles above.

2. Applications: State the financial management principle that appears to be violated in each of the following cases and explain how it is violated:

(a) A corporation is maximizing sales growth and the price of its corporate stock is falling.

(b) A highly paid financial manager in the auto industry quit his job to set up his own small auto repair shop, which is expected to incur a loss for the first three years then earn normal profits.

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