The Absence of Clear Property Rights

question 15

Multiple Choice

The absence of clear property rights

• A) is caused by capital deepening.
• B) is common in many developing nations.
• C) encourages creative destruction.
• D) all of the above

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Definitions:

Dividends Paid

The part of a company's profits paid out to shareholders, typically as cash or shares.

Interest Expense

The cost incurred by an entity for borrowed funds; it is the price paid for the use of borrowed money, or, for corporations, the price paid for the use of borrowed capital.

Payout Ratio

A financial metric that measures the proportion of earnings a company pays to its shareholders in the form of dividends.

Net Income

Net income is the total profit of a company after all expenses and taxes have been deducted from total revenue.