What Is the Name of the Model That Best Explains

question 129

Multiple Choice

What is the name of the model that best explains why an actor in a nationally broadcast television program earns so much more than an actor who is equally talented and productive but who performs in a local play?

• A) occupational crowding
• B) winner-take-all
• C) income mobility
• D) human capital
• E) life-cycle wage pattern

Understand the computation of the effective annual rate for factoring receivables.

Compute the duration it takes for a company to pay its suppliers.

Determine the average collection period for accounts receivable.

Adjust and analyze the impact on the cash cycle due to operational changes.

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Definitions:

Benefits-received Principle

The concept that the amount of taxes an individual pays should be directly proportional to the level of benefits or services they receive from the government.

Ability-to-pay Principle

A taxation principle suggesting that taxes should be levied according to an individual's or entity's ability to pay, typically measured by income or wealth.

Ability-to-pay Principle

A tax principle stating that taxes should be levied according to an individual's or entity’s capacity to pay, typically measured by income or wealth.