How Does U

question 67

Multiple Choice

How does U.S.gross domestic product (GDP) differ from U.S.gross national product (GNP) ?

• A)GNP = GDP minus losses from depreciation
• B)GNP = GDP + income earned by U.S.citizens abroad - income that foreign citizens earned in the U.S.
• C)GNP = GDP + income earned by corporations
• D)GNP = GDP - indirect business taxes + business subsidies

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Definitions:

Average Annual Gross Receipts

An average of a business's total gross income over a specified period, often used to determine tax reporting requirements or eligibility for small business tax concessions.

Complete Liquidation

The process of closing a business by selling all assets, paying off creditors, and distributing the remaining assets to shareholders.

Capital Gain

The profit from the sale of an asset or investment exceeding its purchase price, which is subject to taxation.

Ownership Interest

Refers to an individual's or entity's legal right to possess, use, and dispose of property or assets.