Read the Following Scenario and Answer the Question Below

question 55

Multiple Choice

Read the following scenario and answer the question below.
Glass Lake, located in a valley in low forested mountains, for many decades of the 19th and early 20th centuries was a favorite picnic, recreation, and fishing site for people in surrounding towns and farms. However, in the middle of the 20th century, a trend began in which the privately-owned farms in the Lakeʹs watershed were purchased by large agribusinesses.
The decision was made to grow a profitable crop. The demand for quality farmland resulted in the sale of most of the family-owned establishments and a large increase in the area of land under cultivation. Most of the forests were cut to acquire the land needed for crops. The use of chemical fertilizers and pesticides increased several fold by the end of the century. In addition, the combined population of the lakeside villages quadrupled during the same time. The lake experienced a slow degradation of water quality and biodiversity. Sport fishing declined and the lake became murky while the sediments in the lake increased in depth.
-The symptoms of the lake suggest .

• A) overfishing
• B) eutrophication
• C) that all the problems have been created by deforestation
• D) pesticide poisoning
• E) the effects of global climate change

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Definitions:

Retention Ratio

A financial metric indicating the percentage of a company's income retained and reinvested after dividends are paid to shareholders.

Debt-Equity Ratio

A ratio indicating the finance strategy of mixing shareholders' equity and debt for asset acquisition.

Profit Margin

A financial performance metric that indicates the percentage of revenue that remains as profit after accounting for costs and expenses.

Sustainable Rate Of Growth

The maximum rate at which a company can grow its sales and earnings without increasing its financial leverage or debt.