Suppose Your Province Raises the Provincial Sales Tax by 1

question 96

Multiple Choice

Suppose your province raises the provincial sales tax by 1 percent.You predict that the prices of taxed goods (including the tax) will

• A)rise by 1 percent.
• B)rise by more than 1 percent.
• C)rise by an amount between zero and 1 percent.
• D)not change at all.
• E)fall by an amount between zero and 1 percent.

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Definitions:

Planning

The process of making plans for something, including setting goals, defining actions to achieve the goals, and mobilizing resources to execute the actions.

Managing

The process of directing, controlling, and administrating an organization or effort towards achieving a set goal.

Capital Budgeting

The process used by companies to evaluate and prioritize major investments and expenditures.

Capital Structure

The mix of various forms of external funds and equity that a company uses to finance its activities.