A Subsidy Is a

question 49

Multiple Choice

A subsidy is a

• A) limit on the number of goods that are imported.
• B) tax on imports.
• C) direct payment to producers to help them remain profitable.
• D) foreign aid program directed to developing countries.

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Definitions:

Statement of Comprehensive Income

A financial statement that shows all changes in equity during a period except those resulting from investments by and distributions to equity investors.

Voting Shares

Shares that grant the holder the right to vote on company matters, such as electing the board of directors or making decisions affecting the company's policies.

Shareholders' Equity

The residual interest in the assets of an entity after deducting liabilities, essentially representing the owners' equity in a corporation.

Equity Method

An accounting technique used to record investments in subsidiary companies, where the investment's value is adjusted over time to reflect the investor's share of the subsidiary's profits or losses.