What Did Van Stel and Storey Find from Their Study

question 69

Short Answer

What did Van Stel and Storey find from their study of UK enterprise policy?
'The lessons from the present paper are that public policies to raise the formation of new firms, particularly in areas, are likely to be ______ at best and ______ at worst'.

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its current income. It's calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses.

Depreciation Expense

The orderly assignment of the financial value of a real asset over its life of usefulness.

EBIT

The financial performance metric, Earnings Before Interest and Taxes, deducts all expenses from a firm's income except for interest and tax expenses.

Return On Equity

A measure of a corporation's profitability, calculated as net income divided by shareholder's equity, indicating how effectively management is using a company’s assets to create profits.