Benito,13,lives in the Capital City of a Third World Country

question 41

Multiple Choice

Benito,13,lives in the capital city of a Third World country.His parents are too poor to pay for school fees and uniforms for him and his brothers and sisters,so he quit school after 4th grade to go to work running errands for a neighbour who has a stand in the market.Benito and his family are directly affected by what the textbook describes as

• A)globalization.
• B)a virtuous cycle.
• C)a vicious cycle.
• D)a business cycle.

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Definitions:

Return on Assets

A profitability ratio indicating the efficiency with which a company uses its assets to generate net income, calculated by dividing net income by total assets.

Return on Equity

A financial ratio that measures the profitability of a company in relation to shareholders' equity, indicating how effectively equity supports operations and growth.

Earnings Per Share

A measure of a company's profitability calculated by dividing its net income by the number of outstanding shares of its common stock.

Net Profit Margin Ratio

A profitability ratio calculated by dividing net income by net sales, showing how much profit a company makes for every dollar of its sales.