Which of the Following Statements About Tax Policy Objectives Regarding

question 28

Multiple Choice

Which of the following statements about tax policy objectives regarding business expenses is false?

• A) Lobbying expenses are not deductible because Congress does not want to subsidize political activities.
• B) By disallowing a tax deduction, Congress increases the after-tax cost of undesirable expenditures.
• C) The tax treatment of meals and entertainment expenses is intended to make the law more equitable.
• D) The business interest expense limitation increases the disparity between the tax treatment of debt and equity financing.

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Definitions:

Alternative-Choice Close

A sales technique where the salesperson presents the potential buyer with two choices, both leading to a sale, in an effort to close the deal.

Buying Decision

The process of evaluating and choosing from available alternatives to purchase a product or service.

Question Close

A sales strategy that involves closing a deal by asking the customer a question that assumes the sale has been made.

Purchase Manager

An individual responsible for acquiring goods and services for their organization at the best possible price.