The amount of capital of a firm upon which its rate of return is calculated is known as the

Name: The amount of capital of a firm upon which its rate of return is calculated is known as the
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The rate of return is calculated on the basis of the capital investment of the firm. This capital investment is known as the rate base. It is the amount of money that the firm has used to purchase its assets and start its operations. The rate of return is calculated as a percentage of this rate base.

The Amount of Capital of a Firm Upon Which Its