When Import Duties Are Paid, the _____ Duty Is a Percentage

question 112

Multiple Choice

When import duties are paid, the _____ duty is a percentage of the value of the merchandise.

• A)ad valorem
• B)specific
• C)compound
• D)nontariff
• E)import

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Definitions:

Direct Materials

Raw materials that are used directly in the manufacturing of a product and can be directly attributed to the product.

Borrowing

The act of receiving something with the intention to return it, often referring to money from a lender under agreed terms.

DFL

Usually refers to Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income, as affected by changes in its capital structure.

EBIT

Earnings Before Interest and Taxes, an indicator of a company's profitability excluding interest and income tax expenses.