Value-Added Activities

question 10

Multiple Choice

Value-added activities

• A) Increase revenues
• B) Increase the worth of an organisation's goods and services to customers
• C) Increase the worth of an organisation's goods and services to shareholders
• D) Increase costs that are unrelated to customers

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Definitions:

Tax-Exempt

A status of financial or material exemption from the requirement to pay taxes granted by government authorities.

Present Value

The now-value of a later financial sum or succession of monetary flows, using a determined rate of return as the basis for calculation.

Interest Rate

This is the percentage of a sum of money charged for its use.

Equilibrium Interest Rate

The equilibrium interest rate is the interest rate at which the supply of loanable funds equals the demand, reflecting a balance in the financial market.