A(n) __________ Allows a Firm to Decrease Its Tax Liability

question 4

Multiple Choice

A(n) __________ allows a firm to decrease its tax liability by a fraction of the investment it makes during a particular period.

• A) tax on corporate profits
• B) tax on retained earnings
• C) investment tax credit
• D) personal income tax

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Definitions:

WAIS

The Wechsler Adult Intelligence Scale, a commonly used test designed to measure human intelligence through various cognitive tasks.

David Wechsler

A psychologist known for developing influential intelligence scales, such as the Wechsler Adult Intelligence Scale (WAIS).

Mental Age

A measure of intelligence test performance devised by Binet; the level of performance typically associated with children of a certain chronological age. Thus, a child who does as well as an average 8-year-old is said to have a mental age of 8.

Binet and Simon

Alfred Binet and Theodore Simon, psychologists who developed the first practical intelligence test, the Binet-Simon scale, to assess cognitive abilities in children.