Because State of Nature Is an Undesirable Way to Live

question 32

Multiple Choice

Because state of nature is an undesirable way to live, what do societies do?

• A) Individuals agree to give up some of their freedom in exchange for security.
• B) Engage in social contract theory.
• C) Both a and b.
• D) Live in chaos.

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Definitions:

Total Current Assets

Assets of a company that are expected to be used or converted to cash within one year.

Debt/Equity Ratio

Determination of a firm's borrowing dependency, achieved by dividing its liabilities by its shareholder's equity.

Long-Term Debt

Long-term debt refers to loans and financial obligations lasting over one year that a company owes and is recorded on its balance sheet.

Long-Term Debt Ratio

A financial ratio that measures the proportion of a company's total debt that is due more than one year in the future.