In Order for a Country to Progress from a Less

question 37

Multiple Choice

In order for a country to progress from a less developed country (LDC) to a moderately developed country (MDC) , the country would have to:

• A) increase rate of population growth
• B) move from an industrial to agricultural economy base
• C) raise the per-capita income
• D) maintain limited crop dependence
• E) All of these choices are correct

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Definitions:

Financial Risk

The chance of experiencing financial loss from an investment or enterprise because of different economic elements.

ROA

Return on Assets is a measure of how effectively a company uses its assets to generate profit, calculated as net income divided by total assets.

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.

Financial Leverage

The use of borrowed funds to increase a company's investment potential, which can amplify both potential returns and potential losses.