Trade Is

question 225

Multiple Choice

Trade is:

• A) a way for rich countries to take advantage of poorer countries.
• B) good for rich countries and bad for poorer countries.
• C) a drag on the economies of the trading countries.
• D) a driver of economic growth.

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Definitions:

Risk Level

The degree of uncertainty and/or potential financial loss inherent in an investment decision.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with dividends that are paid out before those to common shareholders.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Target Capital Structure

The optimal mix of debt, equity, and other securities a company aims to hold, balancing risk and return to maximise shareholder value.