-In the Above Figure, If the Tax Rate Is Increased

question 116

Multiple Choice

-In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue

• A) decreases.
• B) is constant.
• C) increases.
• D) may increase or decrease.

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Definitions:

Unrelated Diversification

A corporate strategy where a company expands into areas or industries that are not related to its current business or products.

New Businesses

Enterprises that have been recently established and are in the early stages of operation.

Concentration Strategy

A strategy in which a company focuses its resources on entering or expanding in a narrow market or industry segment.

Expansion

The process of increasing the size, scope, or scale of operations of a business or organization, often into new markets or areas.