A Problem for Developing Countries Is That the Prices of Primary

question 32

Multiple Choice

A problem for developing countries is that the prices of primary products fluctuate more widely than do the prices of finished goods because

• A)crop supply changes very little despite the weather
• B)crop supply fluctuates with the weather
• C)weather never varies
• D)crops go in and out of fashion as new diets are developed
• E)crop demand fluctuates with the weather

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Definitions:

Long-Term Debt

Borrowings and financial obligations that are due for repayment beyond one year's time, often used for major investments or acquisitions.

Profit Margins

Financial ratios that measure the percentage of profit a company generates from its revenues, indicating the efficiency at which a company converts sales into profits.

Asset Turnover Ratios

Asset turnover ratios measure how efficiently a company uses its assets to generate sales, indicating operational efficiency.

Financing Policies

These are strategies that a company formulates for managing its finances, including decisions on debt, equity, and internal financing methods.