When Purity Is Perfect, the Gini Index Is Equal to

question 21

Multiple Choice

When purity is perfect, the Gini index is equal to

• A) 0
• B) 0.25
• C) 0.5
• D) 1

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Definitions:

Total Capital

The sum of a company's equity, debt, and any other long-term financing.

Admission by Investment

The process of becoming a partner or member in a company or partnership through a financial investment.

Capital Balance

The amount of money in a company's equity account, not including profits or losses.

Interest

The fee paid for borrowing money, typically expressed as an annual percentage of the principal.