Poverty is broadly defined as a condition in which a person or group of people lacks the essentials and necessities to achieve a minimum standard of living and well-being. This entry defines poverty and discusses how business practices and policies affect poverty.

Poverty Defined

Poverty is most often defined in two ways: absolute poverty and relative poverty. Absolute poverty is measured by the money needed to meet basic needs such as food, clothing, and shelter. Relative poverty is defined by quality of life as related to the status of other members of the society.

There is no international consensus on the guidelines for measuring poverty. However, there are measures that are used to define the world’s poor in economic terms, such as the level of household income and ...

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