A Country Without a Stable and Effective Government Capable of Protecting

question 43

Multiple Choice

A country without a stable and effective government capable of protecting private property rights and enforcing private contracts will typically

• A)fail to develop a healthy economy.
• B)fail to avoid persistent government budget deficits.
• C)develop a liberal, multi-party parliamentary democracy.
• D)fail to prevent excessive foreign direct investment.

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Definitions:

Statement Of Comprehensive Income

A financial statement that presents a company's total income, including both net income and other income items that are not included in the net income.

Gross Profit Ratio

A financial metric that compares gross profit to net sales, revealing the efficiency of a company in managing its labor and supplies in production.

Accounts Receivable

Customer-incurred debts to a business for goods or services for which payment is outstanding.

Inventory Turnover

A ratio showing how often a company has sold and replaced its inventory during a certain period, indicating the efficiency of inventory management.