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Provide a Short Answer to Each of These Questions

question 33

Essay

Provide a short answer to each of these questions.Be sure to fully explain your answer.
The authors state that we must be constantly vigilant of possible abuses of power or violations of sound ethics as we investigate the political influence of business.Why is this true?


Definitions:

Dividend Payout Ratio

The fraction of net income a firm pays to its stockholders in dividends, expressed as a percentage of the company's total earnings.

Retention Ratio

The proportion of earnings kept back in a company to reinvest, rather than being paid out as dividends.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without having to increase debt or equity financing.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a given period.

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