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Why Was Communism Unable to Provide the Benefits That It

question 25

Essay

Why was communism unable to provide the benefits that it promised in theory? Are there inherent flaws in this line of thinking, or did those in power misapply its principles?


Definitions:

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, usually expressed as a percentage.

External Funding

Capital that comes from outside an organization, including bank loans, public offerings, or investments from private entities, used to finance operations, growth, or investments.

Assets/Sales Ratio

A financial metric indicating how much assets a company holds per unit of sales revenue.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales and earnings without increasing its financial leverage or debt financing.

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