What term refers to all charges based on gross business or sales, or gross or net profit?

Study Engineering Economics and Management Test. Utilize flashcards and multiple choice questions with explanations to master the exam subjects. Prepare confidently for your exam!

The term that encompasses all charges based on gross business or sales, or gross or net profit is referred to as royalties. Royalties are payments made to the owner of a particular asset, often intellectual property, based on the revenue generated from the use of that asset. This form of compensation is commonly used in industries such as publishing, music, and technology, where creators receive a percentage of the profits derived from their creations.

Royalties can vary based on the agreement between the parties involved, but fundamentally, they represent a share of the earnings derived from sales or profits, thus aligning with the description of charges based on gross business or net profit. This makes royalties distinct from other forms of taxes or fees, which may be more uniformly applied or calculated based on different criteria. For instance, excise tax primarily refers to taxes imposed on specific goods or services, while duty tax applies to the importation of goods. Terminal fees are generally related to charges at airports or ports and do not specifically align with the notion of profit-sharing. Therefore, royalties fit the definition given in the question accurately.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy