Claire and Jonathan Own a Janitorial Company, Getting as Many

question 104

Multiple Choice

Claire and Jonathan own a janitorial company, getting as many contracts as they can manage. Sometimes companies do not renew their contracts due to their own insecure finances, which leaves Claire and Jonathan with less income until they can find replacement contracts. Which of the following myths about people who are poor does their situation contradict?

• A) Most poor people are immigrants.
• B) Most poor people are welfare cheats and frauds.
• C) Most poor people are lazy.
• D) Most poor people are trapped in poverty.

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Definitions:

Dividend Payout Ratio

A metric that shows what portion of a company's earnings are distributed to shareholders in the form of dividends, typically expressed as a percentage.

External Financing Needed

The amount of funding a company must seek from outside sources to finance its business operations and growth ambitions beyond what it can generate internally.

Internal Rate of Growth

The maximum rate of growth a firm can achieve without resorting to external financing, relying solely on its own resources.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.