When a Country Exports More Than It Imports, It Has

question 13

Multiple Choice

When a country exports more than it imports, it has a(n)

• A) trade deficit.
• B) favorable balance of trade.
• C) unfavorable exchange rate.
• D) unfavorable balance of trade.
• E) unfavorable balance of payments.

---

Definitions:

Minority Stake

An ownership position in a company that is less than 50 percent, allowing the holder to have a share in the profits but not control decisions.

Target Firm

A company that has been identified as a potential acquisition target by another company or investor.

Equity Carve-Out

The sale of stock in a wholly owned subsidiary via an IPO.

Initial Public Offering

The first sale of stock by a private company to the public, marking a transition from a private to a publicly traded company.