A Country's GNP

question 38

Multiple Choice

A country's GNP:

• A) must be larger than its GDP.
• B) is the total factor income earned by residents of a country.
• C) includes factor income earned by foreigners.
• D) excludes factor income earned abroad by Canadians.

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Definitions:

Financing Policies

Strategies or guidelines that a company follows to decide how to finance its projects, operations, or investments, typically involving decisions between using debt or equity.

Dividend Policy

A company's approach to distributing profits back to its shareholders either in the form of cash payments or additional shares.

Equity Financing

The method of raising capital by selling company shares to investors in return for ownership stakes in the company.

Debt-equity Ratio

A financial ratio that gauges a corporation's leverage by dividing its total obligations by its stockholders' equity.