The Difference Between the Total Value Added and the Total

question 39

Multiple Choice

The difference between the total value added and the total costs incurred is called the ________ of the value chain.

• A) actual value
• B) total margin
• C) total revenue
• D) gross turnover
• E) taxable income

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Definitions:

Retained Earnings

are the portion of a company's profits that are held back and not distributed to shareholders as dividends, often reinvested in the business.

R&D

Short for Research and Development, it refers to the activities undertaken by companies or governments in the innovation and improvement of products and technologies.

Oligopolists

Firms or entities that are part of an oligopoly, a market structure characterized by a small number of large firms that have significant control over market prices and competition.

Patent

A legal document granted by the government giving an inventor exclusive rights to make, use, or sell an invention for a specified number of years.