The View of Mercantilists Can Be Summarized as Follows

question 46

Multiple Choice

The view of mercantilists can be summarized as follows

• A)to sell less to strangers yearly than we consume of theirs in value.
• B)to sell more to strangers yearly than we consume of theirs in value.
• C)to consume more of theirs in value than we sell to strangers.
• D)to consume the same amount as theirs in value as we sell to strangers.
• E)to sell gold and silver to strangers in exchange for services.

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Definitions:

Residual Distribution Policy

A dividend payment policy in which dividends are based on earnings minus all planned capital investments and working capital needs.

Capital Budget

The process and plan for determining and allocating financial resources for major investments or projects within a company.

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, often expressed as a percentage.

Dividend Policies

The policies and guidelines a company follows in deciding how much of its earnings it will pay out to shareholders as dividends.