Which of the Following Scenarios Provides an Example of a Good

question 80

Multiple Choice

Which of the following scenarios provides an example of a good institution that is conducive to economic growth?

• A) In Haiti it takes an average of 203 days to start a business.
• B) In Zimbabwe, nationalization of private property can occur without warning.
• C) Entrepreneurs can invest more than $200,000 in Indian garment factories.
• D) In Peru it only takes 72 days and 32.5 percent of income per capita to start a business.

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Definitions:

Adjusting Entry

An accounting record made to update the financial statements to reflect transactions that have occurred but are not yet recorded.

Interest Expense

The cost incurred by an entity for borrowed funds, usually presented as an expense in the income statement.

Times Interest Earned Ratio

A metric that measures a company's ability to meet its debt obligations by comparing income before interest and taxes to interest expenses.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue, representing the company's bottom line.