Investment In-Kind Refers to the Possibility That

question 127

Multiple Choice

Investment in-kind refers to the possibility that

• A) DVCs will invest for the purpose of becoming less dependent on world markets.
• B) a DVC will overinvest in industries in which it has a comparative advantage, disrupting its development program.
• C) newly established manufacturing firms may expand by reinvesting their profits.
• D) surplus labor in, say, agriculture can be diverted to the production of simple capital goods such as earthen dams.

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Definitions:

Ordinary Income

Income earned from providing services or the sale of goods, typically subject to standard tax rates, as opposed to income classified as capital gains.

Equipment Distribution

The process of supplying equipment to various departments or locations within an organization or among individuals.

Cash Distributions

Payments made in cash by a corporation to its shareholders, typically from earnings or profits.

Tax-exempt Income

Income that is not subject to federal income tax, such as certain interest income from municipal bonds.