Decreases in the Level of Political Stability in a Country

question 130

Multiple Choice

Decreases in the level of political stability in a country tend to:

• A) increase per capita GDP.
• B) decrease per capita GDP.
• C) have no impact on per capita GDP.
• D) increase per capita GDP at lower levels of stability,but decrease per capita GDP at higher levels of stability.

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Definitions:

DuPont Formula

A formula that breaks down Return on Equity (ROE) into three components: profit margin, asset turnover, and financial leverage, to analyze a company's financial performance.

Profit Margin

Profit margin is a financial metric showing the percentage of revenue that remains as profit after all operating expenses are deducted from sales.

Investment Turnover

A ratio that measures the efficiency of a company’s use of its assets in generating sales or revenue; the ratio of net sales to average total assets.

Transfer Prices

Prices charged for the selling of goods and services between subsidiaries or divisions within the same company.