There Are Four Basic Ways a Divisionally Structured Firm Could

question 78

Essay

There are four basic ways a divisionally structured firm could be organized. What are these four ways? Give an example of each.

---

Definitions:

Tax Revenues

The income that is collected by governments through taxation.

Progressive Tax

A tax in which the average tax rate rises with income. People with higher incomes will pay a higher percentage of their income in taxes.

Proportional Tax

A tax in which the average tax rate is the same at all income levels. Everyone pays the same percentage of income in taxes.

Regressive Tax

A tax in which the average tax rate falls with income. People with higher incomes will pay a lower percentage of their income in taxes.