Any Return a Company Receives Over and Above the Original

question 12

True/False

Any return a company receives over and above the original investment in a capital asset is called return on investment.

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Definitions:

Average Tax Rate

The fraction of total income that is paid in taxes, calculated by dividing the total tax amount by the total income.

Dollar Tax Liability

The amount of tax owed to the government, calculated in dollars, based on income, sales, imports, or other taxable activities.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, placing a larger burden on those who have higher earnings.

Average Tax Rate

The proportion of the total taxable income paid in taxes, calculated by dividing the total tax amount by the total income.