An Absolute Poverty Line Is Usually Based On

question 110

Multiple Choice

An absolute poverty line is usually based on:

• A)the cost of certain essential goods.
• B)a certain percentage below the average income in a society.
• C)the lowest quartile of income earners in a society.
• D)the lowest 1 percent of all income earners in a society.

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Definitions:

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets, measuring efficiency in using assets to generate earnings.

Annual Sales

The total revenue a company generates from its operations over the course of a single fiscal year.

Total Debt

The sum of all liabilities and obligations owed by an entity, both short-term and long-term.

Total Equity

The total net value of a company, calculated by subtracting total liabilities from total assets, representing the owners' claim on company assets.