The Policy of Deterrence Is Based on the Idea That

question 12

Multiple Choice

The policy of deterrence is based on the idea that

• A)when threatened,a nation should strike first so that its enemy is deprived of the option of a surprise attack.
• B)economic links with another country will deter it from aggression.
• C)modern warfare requires a flexible response policy.
• D)a nation is deterred from launching a full-scale nuclear attack by the knowledge that it too would be obliterated.
• E)preemptive strikes are preferable to passive behavior.

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Definitions:

Liabilities

Financial obligations or debts owed by a company to outside individuals or entities.

Assets

Resources owned by a company or individual that have economic value and can provide future benefits.

Expense Recognition Principle

An accounting principle that directs the recognition of expenses in the same period as the related revenues.

Actual Cost

The actual expense incurred to acquire an asset or the expense incurred to produce goods or services, as opposed to budgeted or estimated costs.