Table 12-8 -Refer to Table 12-8.If the Government Imposes a $2,000 Lump-Sum

question 18

Multiple Choice

Table 12-8

-Refer to Table 12-8.If the government imposes a $2,000 lump-sum tax,the average tax rate for Marcia and Charles would be

• A) 5 percent and 6.7 percent, respectively.
• B) 8 percent and 6 percent, respectively.
• C) 12 percent and 9 percent, respectively.
• D) 13 percent and 10 percent, respectively.

---

Definitions:

Pension Plan

An employment-based savings program where an employer must deposit funds into a designated account intended for an employee's retirement benefits.

Profit Sharing

A compensation strategy where employees receive additional payments based on the company's profitability, beyond their standard salaries or wages.

Social Responsibility

The idea that businesses should balance profit-making activities with activities that benefit society; encompasses everything from charity work to reducing carbon footprints.

Management Report Card

An evaluative tool or document that assesses and summarizes the effectiveness and performance of a company's management team.