Which of the Following Steps Is Most Likely to Be

question 32

Multiple Choice

Which of the following steps is most likely to be involved in the deregulation of an economy?

• A)increasing restrictions on direct investment by foreign enterprises and international trade
• B)privatizing state-owned enterprises
• C)exercising a high degree of state control over production and pricing
• D)abolishing laws related to the protection of property rights
• E)opposing democracy by adopting communism

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Definitions:

Common Stock

A type of equity security representing ownership in a corporation, with holders possibly entitled to vote on corporate matters and receive dividends.

Shares Outstanding

The total number of shares of a corporation that have been issued and are currently owned by shareholders.

Cost of Equity

The return a firm theoretically pays to its equity investors to compensate for the risk they take by investing in the stock.

Annual Dividend

The total amount of dividend payments a shareholder receives from a company in one year.