Governments Have an Interest in the Economic Performance of Business

question 33

Multiple Choice

Governments have an interest in the economic performance of business because of:

• A)tax collections.
• B)community involvement from the business.
• C)business incentives.
• D)all of these.

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Definitions:

Average Accounting Return

A measure of profitability calculated as the average net income divided by the average book value of investment over a period.

Annual Net Incomes

The total profit of a company after all expenses and taxes have been deducted from revenues for one year.

Salvage Value

The estimate of an asset's worth at the end of its useful life.

Average Accounting Return

A financial ratio that measures the net profit of a project or investment as a percentage of its initial cost.