When a Tax Is Placed on the Buyers of Cell

question 157

Multiple Choice

When a tax is placed on the buyers of cell phones,the size of the cell phone market

• A)and the effective price received by sellers both decrease.
• B)decreases,but the effective price received by sellers increases.
• C)increases,but the effective price received by sellers decreases.
• D)and the effective price received by sellers both increase.

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Definitions:

Non-strategic Investments

Investments not central to a company's business model or core mission, often made for diversification or income generation purposes rather than long-term strategic initiatives.

Investment in Associates

A financial interest held in another company that gives the investor significant influence, typically reflected by ownership of 20% to 50% of the voting stock.

Unrealized Gain

An increase in the value of an asset that has not been sold, hence the gain is not reflected in the financial statements as actual profit.

Equity Method

An accounting technique used by a company to record its investment in another company based on the profit or loss and changes in the investee's equity.