The Term "Business Cycle" Refers to ________

question 33

Multiple Choice

The term "business cycle" refers to ________.

• A)the opening and eventual closing down of businesses
• B)the rising and later declining of the purchasing power of the dollar
• C)the acquiring of raw materials and ultimate selling of a finished product
• D)the tendency for rich economies to be inevitably out-paced by other economies
• E)the slowing and eventual accelerating of economic growth

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Definitions:

Dividend Payout Ratio

The fraction of earnings a firm pays out to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.

Retained Earnings

Retained earnings refer to the portion of a company's profits that are kept by the company instead of being paid out as dividends to shareholders, often used for reinvestment in the business or to pay down debt.

Dividend Payout Ratio

A financial metric that shows what portion of a company's net income is paid out to shareholders in the form of dividends.

Total Debt

The sum of all liabilities, including both short-term and long-term debts, owed by a company.