Payments That a fiRm Makes to Obtain Needed Resources Comprise

question 55

Multiple Choice

Payments that a firm makes to obtain needed resources comprise its

• A) costs.
• B) profits.
• C) capital.
• D) revenues.

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Definitions:

Net Income

The final amount a company keeps as profit after deducting all costs and taxes from its gross revenue.

Marginal Tax Rate

The rate of tax imposed on your income, corresponding to each applicable tax bracket.

Average Tax Rate

Total taxes paid divided by total taxable income.

Net Working Capital

The difference between a company’s current assets and current liabilities, indicating the liquidity of the business.