Given That SGC's Home Country,the United States,is Part of a Regional

question 6

Multiple Choice

Given that SGC's home country,the United States,is part of a regional integration bloc that is based on purely economic goals,benefits to these countries would include all but which one of the following?

• A) Increase the global competitiveness of each member
• B) Surrender of sovereignty of each member
• C) Provide a free trade area for the members
• D) Eliminate tariffs and non-tariff barriers to trade for the members
• E) Provide for the creation of a larger pool of consumers for the members

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Definitions:

Direct Method

A cash flow statement presentation method that shows actual cash flows from operating activities, detailing specific sources and uses of cash, as opposed to the indirect method which adjusts net income for non-cash transactions.

Dividends

Regular payments made by a corporation to its shareholders out of its profits or reserves.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of an entity.

Marketable Securities

Financial instruments that are easily convertible into cash and are therefore considered very liquid.