Which of the Following Is Most Likely to Be an Objective

question 12

Multiple Choice

Which of the following is most likely to be an objective of export tariffs?

• A)Abiding by the rules enforced by the WTO
• B)Curbing the competition offered by foreign firms to domestic firms
• C)Reducing exports from a sector, often for political reasons
• D)Maintaining a positive trade deficit
• E)Increasing the flow of capital in the international market

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Definitions:

Common Share

A type of equity ownership in a corporation, representing a fraction of the total ownership, where each share entitles the holder to a vote at company meetings and a share in the company’s profits.

Acid-Test Ratio

A liquidity ratio measuring a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Balance Sheet

A report that encapsulates a business's assets, debts, and owner's equity at a certain date.

Financial Leverage

The use of borrowed funds with a fixed cost in an effort to amplify the potential return to shareholders.