One of the Reasons Why Poor Nations Have Not Been

question 85

Multiple Choice

One of the reasons why poor nations have not been able to close the development gap is:

• A)the lack of human capital needed to identify and absorb new technology.
• B)the scarcity of natural resources required to promote economic growth.
• C)the low birth rates that have reduced the size of human capital.
• D)an uneven distribution of income.
• E)the lack of political stability in the nations.

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Definitions:

External Financing Needed

The amount of funding a company needs to support its operations and growth activities, beyond what can be generated internally.

Fixed Assets

Long-term tangible assets that are used in the operations of a business, such as buildings and machinery.

Net Working Capital Turnover

A measure of how effectively a company uses its net working capital to generate sales.

Total Fixed Assets

The combined value of all long-term assets that a company owns, which are not expected to be converted to cash within a year.