Tariffs and Import Quotas Differ. One

question 23

Multiple Choice

Tariffs and import quotas differ. One

• A) is a form of protectionism, the other is not.
• B) is a tax, the other is a quantity limit.
• C) is imposed by government, the other is imposed by the market.
• D) is legal, the other is not.
• E) increases imports, the other decreases imports.

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Definitions:

Financing Activities

These activities generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company’s owners, such as selling or repurchasing shares of common stock and paying dividends.

Cash Inflow

Cash inflow is the movement of money into a business from various sources, including sales, investment income, and financing activities.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Operating Activity

Activities directly related to the day-to-day operations of a business, including sales of products or services, and expenses.