Which of the Following Is an Example of an Activity-Based

question 39

Multiple Choice

Which of the following is an example of an activity-based tax?

• A) A tax on business' net income
• B) An excise tax
• C) A gift tax on the transfer of assets by gift
• D) Both a tax on business' net income and a gift tax on the transfer of assets by gift

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Definitions:

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Birth Control Pill

A medication taken orally by women to prevent pregnancy, functioning through the regulation of hormones to inhibit ovulation and other fertility factors.

Tubal Ligation

Tubal Ligation is a surgical procedure for female sterilization involving the sealing, tying, or cutting of the fallopian tubes to prevent eggs from reaching the uterus for fertilization.

Condoms

Thin coverings worn on the penis or inserted into the vagina during sexual intercourse to prevent pregnancy and reduce the risk of sexually transmitted infections.