Which of the Following Is NOT True Regarding the Sales

question 25

Multiple Choice

Which of the following is NOT true regarding the sales tax?

• A)Public opinion surveys have found that state sales taxes are the most popular of all other major revenue sources.
• B)The sales tax base continues to grow and become clearer over time.
• C)The sales tax has two clear weaknesses: elasticity and equity.
• D)For local governments,sales tax revenue can be attractive because it offers the opportunity to have visitors bear some of the tax burden.

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Definitions:

Appraisal Rights

Legal rights that allow shareholders to have their shares appraised and receive compensation in the event of an unfavorable corporate action.

Dissenting Shareholders

Shareholders who disagree with a major corporate decision, such as a merger or acquisition, and are often entitled to certain rights, like selling their shares back to the company at a fair value.

Legal Status

The classification of an individual's or entity's standing under the law, which can affect rights, responsibilities, and jurisdiction.

Value Determination

The process of calculating or assessing the worth of an asset, company, or financial product.