In Rostow's Five-Stage Model of Economic Development, Countries in Stage

question 9

True/False

In Rostow's five-stage model of economic development, countries in Stage 5 (the age of mass consumption) are mostly service economies.

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Definitions:

Net Income

A company's overall earnings minus all expenditures and tax obligations.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid before any dividends are paid to common stockholders. Preferred stock typically does not have voting rights.

Return On Assets Ratio

A profitability ratio that measures how efficiently a company can manage its assets to produce net income, calculated by dividing net income by total assets.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue, indicating financial health.