Which of the Following Statements About the Social Insurance Tax

question 53

Multiple Choice

Which of the following statements about the social insurance tax is INCORRECT?

• A) According to the book,the tax rate for the programs is 15.3 percent.
• B) The amount paid is typically split in half between employer and employee.
• C) Lower income individuals are exempt from social insurance tax withholding.
• D) There is a cap on the portion of income taxed for Social Security.
• E) Self-employed individuals pay the full 15.3 percent rate.

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Definitions:

Competitive Forces

External factors that influence the competitive position of a firm within an industry, including competition, potential entrants, substitutes, buyers, and suppliers.

Profitability

A measurement of the efficiency and effectiveness of a company at generating profits from its operations.

Competition And Profitability

The relationship between the competitiveness of a market and the ability of firms within that market to generate profits.

Competitive Forces

The external factors that influence the competitive position of a firm in an industry or market.