If a Developing Country Wanted to Increase Its Level of Investment

question 77

Multiple Choice

If a developing country wanted to increase its level of investment, which of these actions would directly lead to this goal?

• A) Strengthen and enforce private property laws.
• B) Provide a minimum level of food to all people in the country.
• C) Increase taxes to prevent corporations from keeping excess profits.
• D) Nationalize all foreign manufacturing facilities in the country.

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Definitions:

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.

Sales

The total amount of goods or services sold by a company, a primary source of revenue for businesses.

Net Income

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

Debt Ratio

A financial ratio that measures the proportion of a company's assets that are financed by debt.