Which of the Following Is Not a Characteristic of an Ideal

question 134

Multiple Choice

Which of the following is not a characteristic of an ideal tax system, according to the text?

• A)Fairness
• B)Taxing of items with high price elasticities
• C)Low marginal tax rates
• D)Simplicity
• E)High proportion of taxable sums subject to tax

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders, distributing profits in the form of cash.

Journal Entries

The method by which financial transactions are recorded in an accounting system, typically involving a debit to one or more accounts and a credit to another in equal amounts.

Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Par Value

A nominal value assigned to a share of stock in the charter of a corporation, which is the minimum legal capital per share.