Due to Financial Difficulties, Damon's Parents Have Difficulty Paying Rent

question 495

Multiple Choice

Due to financial difficulties, Damon's parents have difficulty paying rent and utilities, buying nutritious food, and taking their children to the doctor or dentist when needed. These parents often verbally argue with each other over their financial problems, which also affects their relationship with their children. Although Damon and his siblings would love to have a computer, they know this will never be possible. According to research, a home situation, such as the one described, has been shown

• A)to affect the child's physical health with the child being sick more often.
• B)not to affect a child's cognitive development.
• C)not to affect a child's socioemotional development.
• D)to have short-term effects, but not to lead to a cycle of continued poverty as an adult.

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Definitions:

ROA

Return on Assets, a financial ratio that indicates how profitable a company is relative to its total assets, measuring how efficient management is in using assets to generate earnings.

Debt/Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company is using its equity to create profits.

P/E Ratio

The price-to-earnings ratio, a valuation metric for assessing a company's current share price relative to its per-share earnings.