In the 1980s,Japan Agreed to Limit the Quantity of Automobiles

question 155

Multiple Choice

In the 1980s,Japan agreed to limit the quantity of automobiles it would export to the United States.Why did the Japanese government agree to this trade restriction?

• A)Japanese automobile producers lobbied for the restrictions in order to increase the price of their exports to the United States.
• B)The Japanese government wanted to limit sales to the United States in order to make more automobiles available for Japanese consumers.
• C)The Japanese government feared that the alternative would be a tariff or quota on imports of Japanese automobiles imposed by the U.S.government.
• D)The Japanese government wanted more automobiles to be available for export to countries other than the United States.

Recognize the tax effects of non-monetary contributions to a partnership.

Understand the allocation of partnership income and expenses among partners.

Learn the fundamentals of partnership depreciation methods for contributed properties.

Understand the difference between active and passive participation in business activities.

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Definitions:

Lend Money

The act of giving money to another party with the expectation that it will be paid back, often with interest, at a later date.

Bank Charters

Legal documents issued by a governmental or regulatory body granting the right to operate as a bank and outlining the specific conditions under which the bank must operate.

Savers

Individuals or entities that set aside a portion of their disposable income, rather than using it for consumption expenditures.

Borrowers

Individuals or entities that take out loans from financial institutions or individuals, agreeing to repay them over time, typically with interest.