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According to differential association theory, the possibility of becoming deviant depends on four factors. List and briefly discuss these four factors.
Profit Margin Ratio
A financial metric that measures the percentage of profit a company makes for each dollar of sales, indicating the efficiency of the company in managing its operations.
Gross Margin Ratio
A financial metric expressing the difference between sales and the cost of goods sold as a percentage of sales.
Times Interest Earned
A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.
Vertical Financial Statement Analysis
The examination of a company's financial statements to understand the relationships between individual items and the total, usually expressed as a percentage.
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