What Were the Risks of Relying on Farming as a Means

question 29

Multiple Choice

What were the risks of relying on farming as a means of subsistence?

• A) Farms depended on natural systems and could be attacked.
• B) Farms did not allow people to live in one place for very long.
• C) Farms were difficult to operate for more than a few years.

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Definitions:

Equity Multiplier

A ratio of financial leverage which quantifies the fraction of a company's assets funded by the equity of its shareholders.

Net Profit Margin

A financial ratio that shows the percentage of net income to revenue, indicating the efficiency at which a company converts sales into net profit.

Gross Margin

The difference between the sales revenue and the cost of goods sold, indicating the profitability of a company's core business activities.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its earnings before interest and taxes (EBIT).