The Savings Ratio Expresses

question 121

Multiple Choice

The savings ratio expresses

• A)the percentage of gross income saved.
• B)the ability to cover immediate debt when there is an interruption in income.
• C)the relative amount of cash surplus achieved during a given period.
• D)the percentage of tax-deferred income earned annually.
• E)none of the above.

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Definitions:

ERG Theory

A theory of motivation created by Clayton Alderfer, which organizes human needs into three distinct groups: Existence, Relatedness, and Growth.

Psychological Growth

The development of an individual's mental and emotional capacities throughout their life.

Total Revenue

The overall amount of money generated by a business or organization from its activities, without deducting any expenses.

Competitive Industry

An industry characterized by a large number of firms competing with each other, leading to efficient outcomes and low prices.