When the Return on Investment for Each Division of a Corporation

question 104

Multiple Choice

When the return on investment for each division of a corporation is greater than what the return would be if each division were an independent business,that corporation is said to have achieved

• A) synergy.
• B) a leveraged buyout.
• C) its hurdle rate.
• D) the status of a true conglomerate.
• E) Stage III.

Analyze the equity and efficiency implications of various tax proposals.

Understand the definition and implications of tax incidence.

Recognize the principles of taxation and their application in policy justification.

Identify concepts of horizontal and vertical equity in taxation.