The Founder Effect Occurs When

question 49

Multiple Choice

The founder effect occurs when

• A) large groups of individuals leave their home population and establish new settlements, mating only among themselves.
• B) small groups of individuals leave their home population and establish new settlements, mating only among themselves.
• C) many members of a population die, resulting in a great loss of genetic diversity.
• D) many members of a population reproduce causing too much genetic diversity within the population.

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Definitions:

Liabilities Plus Equity

Liabilities plus equity represents the total value of a company's financial obligations plus its owners' investments, crucial for understanding its financial health.

Net Income

A company's overall earnings following the deduction of all expenses and taxes from its total revenue.

Du Pont Identity

A framework that breaks down the return on equity (ROE) into three parts: profit margin, asset turnover, and financial leverage, to diagnose financial performance.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets financed by its shareholders' equity.