Capability-Based Diversification Comprises Three Ways in Which Capability Can Be

question 20

Multiple Choice

Capability-based diversification comprises three ways in which capability can be transferred:

• A)parent to new business,old business to new business,new business to old business
• B)parent to old business,old business to new business,new business to old business
• C)parent to new business,old business to old business,new business to new business
• D)all of the above

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Definitions:

Progressive

A taxation system in which the tax rate increases as the taxable amount increases, often applied to income tax.

Regressive

In taxation, regressive describes a tax that takes a smaller percentage of income as the income increases, often placing more burden on lower-income individuals.

Average Tax Rate

The average tax rate is the percentage of total income paid in taxes, calculated by dividing the total amount of taxes paid by the total income before taxes.

Taxable Income

The portion of an individual's or corporation's income that is subject to income tax after allowances, exemptions, and deductions.