Why Did the Soviet Union Collapse

question 14

Multiple Choice

Why did the Soviet Union collapse?

• A)The government tried to tax liquor, an act that sparked the Vodka Revolt of 1989.
• B)A Chinese invasion of Siberia led to a military coup.
• C)Its economy could not sustain the large defense budgets necessary to compete with the United States.
• D)It had too much internal ethnic diversity.
• E)Its people revolted to claim the right to religious freedom.

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Definitions:

Gordon Model

A model used to determine the value of a stock by assuming a dividend grows at a constant rate indefinitely.

Long-Term Growth Rate

The projected rate at which a company's earnings or revenue will grow over a long period.

Market Values

The prevailing price for transactions involving assets or services in the open market.

Capital Structure

The mix of different forms of financing used by a company to fund its overall operations and growth, including debt and equity.