A Term Often Used in the Press and in Political

question 24

Multiple Choice

A term often used in the press and in political dialogue to refer to a society that makes the well-being of people the responsibility of government is:

• A)residual state.
• B)welfare state.
• C)socialist state.
• D)blue state.

---

Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.

Stockholders' Equity

The residual assets of a company that belong to the shareholders, calculated as the total assets minus total liabilities.

Total Asset Turnover Ratio

A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales to average total assets.

Net Profit Margin Ratio

A financial metric that shows the percentage of a company's revenue that remains as profit after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.