One of the Major Weaknesses of Early Modernization Theory Was

question 38

Multiple Choice

One of the major weaknesses of early modernization theory was that

• A) it underestimated the role of religion within developing nations.
• B) it focused excessively on the political aspects of underdevelopment.
• C) it was too optimistic about the ability of developing countries to modernize.
• D) it underestimated the importance of economic underdevelopment.
• E) it had no way of measuring different aspects of development.

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Definitions:

Income Tax

A tax levied by governments on the income generated by businesses and individuals within their jurisdiction.

Dividend Reinvestment Plan

A corporate program enabling investors to use their cash dividends to buy more or partial shares when dividends are paid out.

Residual Dividend Policy

A strategy where dividends are paid to shareholders from the leftover or residual earnings after all operational and expansion-related expenses are met.

Target Capital Structure

The mix of debt, preferred equity, and common equity that a company aims to hold over time, optimizing its cost of capital and market value.