Which One of the Following Statements Related to Corporate Taxes

question 4

Multiple Choice

Which one of the following statements related to corporate taxes is correct?

• A) A company's marginal tax rate must be equal to or lower than its average tax rate.
• B) The tax for a company is computed by multiplying the marginal tax rate times the taxable income.
• C) Additional income is taxed at a firm's average tax rate.
• D) The marginal tax rate will always exceed a company's average tax rate.
• E) The marginal tax rate for a company can be either higher than or equal to the average tax rate.

---

Definitions:

Credit Reports

Documents that detail an individual's or entity's credit history, including loans, repayments, and overall creditworthiness.

Reporting Agencies

Reporting agencies, often known as credit reporting agencies or bureaus, collect and consolidate individual credit information, providing credit reports and scores to authorized parties.

Consumer Product Safety Act

A federal law in the United States that was enacted to protect consumers against unreasonable risks of injuries and deaths associated with consumer products.

Product Safety

The assurance that products will not cause harm to consumers or users when used as intended.