Capital Flight

question 38

Multiple Choice

Capital flight

• A)decreases a country's net exports and increases its long run growth path.
• B)increases a country's net exports and increases its long run growth path.
• C)increases a country's net exports and decreases its long run growth path.
• D)decreases a country's net exports and decreases its long run growth path.

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Definitions:

Common Stock

Equity ownership in a corporation, with voting rights and the potential to receive dividends.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Stock Dividend

The payment of additional shares to shareholders instead of cash, usually at a fixed rate, often used by companies to conserve cash.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.