The Practice of Shielding One or More Sectors of a Country's

question 228

Multiple Choice

The practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas is referred to as

• A) domestic imperialism.
• B) protectionism.
• C) blocked competition.
• D) import taxation.
• E) trade restriction.

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Definitions:

Working Capital

Working capital is the difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.

Articles of Incorporation

A legal document that establishes a corporation's existence, filed with a governmental body in the jurisdiction where the corporation is headquartered.

Double Taxation

A situation where the same income is taxed twice: first at the corporate level on profits, and then again at the shareholder level on dividends received.

Dividends

Dividends are a portion of a company's earnings distributed to its shareholders as a reward for their investment.