Which of the Following Taxes Best Illustrates the Ability-To-Pay Principle

question 90

Multiple Choice

Which of the following taxes best illustrates the ability-to-pay principle of tax fairness?

• A) Roads and highways are built and maintained through a tax on petrol.
• B) Your local library is funded through a flat $10 tax levied on all homeowners.
• C) National parks and reserves are maintained through a state lottery.
• D) The Aged Pension supports the income of old people and is funded through the progressive federal income tax.
• E) A sales tax on food pays for your police force and fire brigade.

Identify strategies and tools for optimizing cash balances and managing float effectively.

Distinguish between various motives for holding cash and how they influence cash management policies.

Apply the concept of Net Present Value (NPV) to decisions regarding cash management services.

Comprehend the implications of cash concentration and collection strategies on a firm's liquidity.

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Definitions:

Prostaglandins

Lipid compounds that have diverse hormone-like effects in animals, including mediating inflammation and pain.

Surfactant

A substance that reduces surface tension, allowing for the easier exchange of gases in the lungs and preventing alveolar collapse.

Manufacturing Firms

Companies that produce and sell goods using raw materials, labor, and machinery.

Computer Chips

Small semiconductor devices that contain integrated circuits used to perform computing tasks.