In Determining the Incidence of the Corporate Income Tax

question 71

Multiple Choice

In determining the incidence of the corporate income tax:

• A)Corporations may pass the tax burden onto consumers in the form of higher prices
• B)Corporate shareholders may bear the burden of the corporate tax in the form of lower return on investment
• C)Corporate employees may bear the burden of the corporate tax in the form of lower compensation
• D)All of the above parties may bear the indirect burden of the corporate income tax

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Definitions:

Drawer And Drawee

Terms in check transactions where the drawer is the party that writes the check, and the drawee is the bank that is requested to pay the amount.

Functions

Refers to the roles, activities, or duties that are intended or expected to be performed by a person, system, or object.

Cash

Money in the form of bills or coins; physical currency that is used as a medium of exchange.

Assignment

A process by which one party transfers rights, duties, or property to another.