To What Use Did the Chinese Rulers Apply Most of the Revenue

question 37

Multiple Choice

To what use did the Chinese rulers apply most of the revenue from the tax on salt?

• A)to extend and develop the Silk Road
• B)to build the Great Wall
• C)to support large armies
• D)to extend the Grand Canal
• E)to promote the silk industry

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

CAPM Approach

The Capital Asset Pricing Model, a formula used to determine the expected return of an investment based on its risk relative to the market.

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate them for the risk they undertake by investing their capital.

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but kept back to reinvest in the business.