The Social Security Administration, Small Business Administration, and the Smithsonian

question 23

Multiple Choice

The Social Security Administration, Small Business Administration, and the Smithsonian Institution are examples of

• A) cabinet departments.
• B) independent executive agencies.
• C) independent regulatory agencies.
• D) government corporations.
• E) corporations subject to regulation.

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Definitions:

Income Taxes

Taxes levied on both earned income (wages, salaries) and unearned income (dividends, interest), imposed by government authorities.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and should not affect future investment or spending decisions.

Capital Budgeting

The process used by businesses to evaluate and prioritize investments in long-term assets and projects based on their potential returns.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.