To Calculate a Tax, You Need to Know: I

question 132

Multiple Choice

To calculate a tax, you need to know: I. the tax base
II) the taxing agency
III) the tax rate
IV) the purpose of the tax

• A)Only I is correct.
• B)Only IV is correct.
• C)Only III is correct.
• D)Items I through IV are correct.
• E)I and III are correct.

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Definitions:

Value Per Share

The amount of money that would be received for each share of stock if all of a company’s assets were sold at their exact book value.

Incremental Value

The additional value created by undertaking a particular action, project, or investment, compared to not doing so.

Shares Outstanding

The total number of shares of a company that are currently owned by shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Incremental Value

The additional or extra value created by undertaking a certain action or decision, compared to doing nothing or choosing an alternative.