Why Would a Food Web Rather Than a Food Chain

question 100

Multiple Choice

Why would a food web rather than a food chain be the preferred way to represent the movement of food through the community?

• A)Food chains are oversimplified and suggest that a consumer eats only a single food item.
• B)Food webs place producers at the bottom, whereas food chains place them at the top.
• C)Food webs are based on a foundation of producers.
• D)Actually, ecologists prefer to use food chains to describe food movements.

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Definitions:

Leverage Gain

The increase in potential returns to an investor achieved by using borrowed funds or financial derivatives.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements; it represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.

Capital Structure

The composition of a company’s debt and equity used to finance its overall operations and growth.

Market Risk Premium

The additional return an investor requires from a market portfolio over the risk-free rate, compensating for the risk of the investment.