Explain How the Founder Effect Can Lead to a Descendent

question 27

Essay

Explain how the founder effect can lead to a descendent population that differs greatly from its parent population over a relatively short period of time.

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Definitions:

Average Rates

A method for determining a consistent rate over a specified period, often used in calculations regarding finance or foreign exchange.

Foreign Subsidiary

An overseas entity controlled by a parent company, engaging in business operations distinct from those of the parent company in its home country.

Functional Currency

The main currency used by a business or economy, where the majority of its transactions are conducted.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment or to pay off debt.