Despite Having a Small Population and Severely Limited Natural Resources

question 74

Multiple Choice

Despite having a small population and severely limited natural resources, Hong Kong has consistently ranked among the richest regions in Asia. The prime reason behind this is:

• A) the active encouragement of entrepreneurship by the government.
• B) the imposition of excessive and strict regulations by the government.
• C) the imposition of embargoes on Hong Kong by other nations.
• D) the presence of communism.

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Definitions:

After-Tax Net Income

The amount of income that remains after all applicable taxes have been subtracted from the total revenue.

Initial Investment

The original sum of money used to start a business venture or investment.

Accounting Rate of Return

A financial ratio that measures the expected profitability of an investment, calculated as the average annual profit divided by the initial investment.

Cash Flows

The movement of money into and out of a business, used to assess the company's liquidity, financial health, and profitability over time.