Scarcity Requires That People Must

question 462

Multiple Choice

Scarcity requires that people must

• A) cooperate.
• B) compete.
• C) trade.
• D) make choices.

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Definitions:

Equity Multiplier

A financial ratio that measures the proportion of a company’s assets that are financed by stockholders' equity, indicating the level of debt financing.

New Equity

Funds raised by a company through the issuance of shares to the public or to specific investors.

New Assets

Items of value that are acquired or added to a company's or individual's holdings, which have the potential to generate income or increase net worth.

Enterprise Multiple

A valuation metric that compares a company's enterprise value to its earnings before interest, taxes, depreciation, and amortization (EBITDA).