Countries with a High Level of Bureaucratic Inefficiency Tend to Have

question 41

Multiple Choice

Countries with a high level of bureaucratic inefficiency tend to have low rates of real GDP growth because

• A) of complications that keep capital goods from flowing to their most efficient use.
• B) of poor accounting practices when determining real GDP.
• C) of poor management skill development in companies.
• D) they facilitate capital goods development.

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Definitions:

Management Fees

Fees charged by managers for the operation, management, or administration of a property, fund, or project.

Consolidated Financial Statements

Consolidated financial statements present the financial position and results of operations for a parent company and its subsidiaries as if they were a single economic entity.

Elimination

In accounting, refers to the removal of intercompany transactions to avoid double counting when consolidating financial statements.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its tangible and identifiable intangible assets.