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Explain how research and development may yield external effects.
Profit Margin
A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, representing the profitability.
Current Ratio
This ratio assesses whether a company can cover debts due in less than a year, indicating its short-term financial health.
Current Assets
Assets that are expected to be converted into cash, sold, or consumed within one year or within the firm's operating cycle if longer.
Current Liabilities
Short-term financial obligations due within one year, including accounts payable, short-term loans, and accrued expenses.
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