Advantages That Arise from Using Resource Endowments or Assets That

question 43

Multiple Choice

Advantages that arise from using resource endowments or assets that are tied to a particular place and that a firm finds valuable to combine with its own unique assets are known as

• A) location-specific advantages.
• B) capital-specific advantages.
• C) absolute advantages.
• D) production factor advantages.

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Definitions:

Double Taxation

A situation where income or profits are taxed at two levels, typically once at the corporate level and again at the individual shareholder level.

Dividends

Payments made by a corporation to its shareholders from the company's profits or reserves.

Corporate Penalty Taxation

The imposition of taxes on corporations for violating laws or regulations, distinct from regular taxation on profits.

Closely Held Corporation

A business corporation that is owned by a small number of shareholders; its shares are not publicly traded.