Tax Avoidance Can Be Flagrant and Very Intentional, but Entrepreneurs

question 66

Multiple Choice

Tax avoidance can be flagrant and very intentional, but entrepreneurs often come up short on their tax commitments because of a single-minded focus on their product or service and _____.

• A) casual accounting system.
• B) low-cost accounting software.
• C) incompetent in-house accountant.
• D) cash-basis accounting system.

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Definitions:

Individualized Contracts

Contracts that are specifically tailored to the unique needs and circumstances of the parties involved, often requiring extensive negotiation.

Severance Pay

Compensation paid to an employee upon termination of employment, often based on length of service.

Reasonable Notice

The adequate period of time that must be given prior to taking certain legal actions, such as terminating employment or altering contractual terms.

Profit Sharing

A compensation structure where employees receive a share of the company's profits, often as a form of incentive or reward.