PRINCIPAL TAXES

The principal taxes are as follows.
1. Taxes on income:
a. Income tax:
b. Agricultural income tax (levied only by states);
c. Interest tax (applicable to banking and financial companies).

2. Taxes on transactions:
a. Local sales tax (levied only by states);
b. Central sales tax;
c. Excise duty;
d. Customs duty;
e. Stamp duty;
f. Gift tax;
g. Expenditure tax.

3. Taxes on property:
a.Wealth tax;
b.Property tax.

Five major types of business tax:
1. Corporate franchise tax
2. Employment tax
3. Excise tax
4. Gross receipt tax
5. VAT

PECULIAR FINANCIAL WORD

Burn Rate-
The rate at which a company is spending its cash reserves.

QUIZ NO 6

1. Firms with high levels of operating leverage are generally considered to be:

a. Less risky.
b. More risky.
c. International firms.
d. Local firms.

2. Depreciation is an example of a:

a. Variable cost.
b. Fixed cost.
c. Controllable cost.
d. Indirect cost of manufacturing plant.

3. Mary quit a job paying $60,000 per year to attend graduate school. The $60,000 is an example of a:

a. Variable cost.
b. Sunk cost.
c. Opportunity cost.
d. Indirect cost.

4. The difference between the book values of assets and liabilities is equal to ……………………………

5. …………………………was the first bank to issue a deep discount bond in India in January 1992.

6. Expand the following:
DIPP………………………………
ADB………………………………

7. Foreign market of United States is called…………………...
Japan called…………………………….
United Kingdom called…………………
Netherland called……………………….
Spain called…………………………….

Answer:1-b, 2-b, 3-c, 4-Share holder's fund or Networth, 5-IDBI, 6-Department of Industrial policy & promotion, Asian development Bank, 7- Yankee, Samurai, Bulldog, Rembrandt, Matador