According to the Textbook, Why Do Definitions Matter When It

question 105

Multiple Choice

According to the textbook, why do definitions matter when it comes to discussing poverty?

• A) because social policies and programs refer to specific definitions to set up criteria for inclusion and exclusion
• B) because people need to know how to categorize themselves so they are motivated to work harder
• C) because people feel more secure when they know they belong to an identifiable group
• D) because people need to be able to compare themselves to others so they understand their position

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Definitions:

Dividend Income

Earnings obtained by holding company shares, typically dispensed from the firm's earnings.

Optimal Dividend Policy

The best strategy a company can adopt for the payment of dividends, balancing between retaining earnings for growth and satisfying shareholders.

Residual

The amount remaining after the greater part has been deduced; in finance, often refers to the residual value or remaining interest in an asset.

Stock Splits

occur when a company divides its existing stock into multiple shares to boost the liquidity of the shares, though the overall value of the company doesn't change.