Which of the Following Statements About the Tea Act of 1773

question 76

Multiple Choice

Which of the following statements about the Tea Act of 1773 is not true?

• A)It repealed import duties on tea in England.
• B)It mandated that tea to the colonies arrive only on special East India Company ships.
• C)It restricted tea sales to only a few distributors in each colonial port.
• D)The East India Company's tea would sell cheaper than smuggled tea.
• E)It was designed to provide the British government with much-needed revenue.

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Definitions:

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent or salaries.

Accounting Break-even

The point at which a company's total revenues exactly match its total expenses, indicating no net profit or loss from operations.

Financial Break-even

The point at which total revenues and total expenses are equal, resulting in no net profit or loss, indicating the minimum performance level required to avoid losing money.

NPV

NPV (Net Present Value) is a calculation used to determine the present value of an investment's cash inflows and outflows over time, taking into account a specific discount rate.