In Countries with Weak Democracies and Weak Political Parties, Demands

question 70

True/False

In countries with weak democracies and weak political parties, demands are based on patronage, which is likely to harm the business climate and discourages investment.

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Definitions:

Investing Activity

Transactions involving the purchase and sale of long-term assets and investments, part of a company's cash flow activities.

Financing Activity

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Fiscal Year

It is a one-year period that companies and governments use for financial reporting and budgeting, which does not necessarily align with the calendar year.