Which of the Following Is False

question 116

Multiple Choice

Which of the following is false?

• A)A proportional tax rate structure imposes a constant tax rate while a progressive tax rate structure imposes an increasing marginal rate related to the tax base.
• B)The average tax rate changes under a proportional tax rate structure, but it is static for a progressive tax rate system.
• C)An example of a proportional tax is the tax on gasoline.
• D)An example of a progressive tax is the federal tax on gifts.
• E)None of the choices are correct.

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Definitions:

Franchising

A business model allowing individuals or entities to operate a business under the name and system of an established brand in exchange for a fee and ongoing royalties.

Franchisee

An individual or business entity that purchases the right to operate a branch of a franchise using the franchisor’s trademarks, systems, and business model.

Earnings

The amount of money that an individual or corporation receives in exchange for providing a good, service, or through investing capital.

Salaried Manager

An employee who receives a fixed amount of remuneration from their employer at regular intervals, typically monthly or annually, and often occupies a supervisory or managerial position.