A Tariff Is a Tax Placed on

question 100

Multiple Choice

A tariff is a tax placed on

• A)an exported good and it lowers the domestic price of the good below the world price.
• B)an exported good and it ensures that the domestic price of the good stays the same as the world price.
• C)an imported good and it lowers the domestic price of the good below the world price.
• D)an imported good and it raises the domestic price of the good above the world price.

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Definitions:

Subsidiary Companies

Companies that are controlled by another company, known as the parent company, through ownership of more than half their voting stock or through other means.

Right of Return

A policy that allows customers to return purchased goods within a specified period if they are not satisfied.

Sales Price

The amount for which a commodity is sold to a customer, excluding tax, shipping, and handling.

Cash Planning

The process of forecasting, managing, and monitoring a company's cash inflows and outflows to ensure it has sufficient liquidity to meet its obligations.