Which of the Following Can Be a Step Involved in the Deregulation

question 114

Multiple Choice

Which of the following can be a step involved in the deregulation of an economy?

• A)Imposing price controls,rendering prices free of the influence of demand and supply.
• B)Relaxing or removing restrictions on direct investment by foreign enterprises and international trade.
• C)Offering government bail-outs to private companies in financial trouble.
• D)Nationalizing private companies that are vital to national interest.

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Definitions:

Credit Policy

The guidelines a company follows to determine credit terms for customers, including payment terms, credit limits, and how to handle late payments.

Incremental Pre-tax Profits

Additional earnings before taxes that result from specific actions or decisions, used in investment appraisal.

Variable Costs

Variable costs are expenses that change in proportion to the activity of a business, such as sales volume or production levels.

Credit Terms

The conditions, including payment deadlines and interest rates, under which credit is extended to a borrower.