Some Colleges Charge All Students the Same "Activity Fee

question 218

Multiple Choice

Some colleges charge all students the same "activity fee." Suppose that students differ by how many campus activities they engage in. This charge is most like

• A)an excise tax that conforms to the benefits principle.
• B)an excise tax that violates the benefits principle.
• C)a lump-sum tax that conforms to the benefits principle.
• D)a lump-sum tax that violates the benefits principle.

Understand the concept, growth factors, and significance of home-based businesses in the current economic climate.

Recognize different customer relationship models and their underlying principles, including the customer intimacy model.

Understand the sources and functions of industry ratios.

Identify the role and significance of business brokers in the market.

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Definitions:

Arbitrage Opportunities

Situations where a financial instrument, or a combination of financial instruments, can be bought and sold simultaneously in different markets to profit from price discrepancies.

Risk-Free Rate

The return on investment with no risk of financial loss, often represented by the yield on government securities.

Nonsystematic Standard Deviation

A measure of variance in a portfolio's total returns attributable to factors specific to individual securities, as opposed to the market.