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Explain the flaws in 'sub-prime' lending in the US and how it contributed to the GFC.
Invested Assets
Assets in which money has been spent to acquire or improve, intended to generate income or profit.
Income From Operations
The profit realized from a business's core operations, excluding costs and expenses related to financing and investments.
Residual Income
The income that remains after subtracting all required costs of capital from operating profit, a measure of profitability.
Activity Base
A measure used to allocate costs in activity-based costing, reflecting the level of effort or consumption of resources.
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