In Capitalist Countries,the Government Decides What to Produce and How

question 53

True/False

In capitalist countries,the government decides what to produce and how the goods and services will be produced.
Level of Learning 1: Knowledge of key terms

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and profits without increasing financial leverage or external equity.

Retention Ratio

The share of net income not disbursed as dividends to shareholders but rather reserved by the business for various uses.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in the form of dividends, compared to the portion reinvested in the business.

Percentage of Sales Approach

A method used in financial forecasting to estimate various elements of a financial statement as a percentage of forecasted sales.