Class 4 Flashcards
1
Q
what is free cash flow
A
2
Q
what are examples of positive externalities
A
indirect reduction of costs
indirect increase in revenues
3
Q
what are examples of negative externalities
A
indirect increase in costs
indirect decrease in revenues
4
Q
what is overhead
A
ongoing business expenses that are not directly related to specific products or services
5
Q
statutory vs effective tax rate (which is higher)
A
statutory: official tax rate imposed by law
effective: actual % of taxable income
statutory is higher than effective
