The Practice of Shielding One or More Sectors of a Country's

question 228

Multiple Choice

The practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas is referred to as

• A) domestic imperialism.
• B) protectionism.
• C) blocked competition.
• D) import taxation.
• E) trade restriction.

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without having to increase leverage or equity financing.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by shareholders' equity.

Fixed Assets Investment

Expenditures related to acquiring or improving long-term assets such as property, plant, and equipment that will be used in business operations.

Debt-Equity Ratio

The ratio demonstrating the proportionate role of debt and equity in a company's asset financing scheme.