If Rhoda in Hungary Buys Candy from Matt in Maine

question 73

Multiple Choice

If Rhoda in Hungary buys candy from Matt in Maine for $20, and Matt buys foodin his favorite goulash restaurant in Hungary for $20, then the U.S. net exports:

• A) and net capital outflow are both zero.
• B) and net capital outflow both equal $20.
• C) is zero and net capital outflow is $20.
• D) equals $20 and net capital outflow is zero.

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Definitions:

State Of Incorporation

The jurisdiction under whose laws a corporation is registered and operates, determining its legal obligations and protections.

Professional Corporation

A corporate structure available to licensed professionals, like doctors or lawyers, offering certain tax and liability advantages.

Malpractice

Professional misconduct or failure to exercise adequate skill, leading to the loss or injury of a patient, client, or customer.

De Facto Corporation

A business entity that operates like a corporation but hasn't completed all legal steps required for incorporation, often treated as a corporation for most legal purposes.