Which of the Following Is an Example of a Tax

question 81

Multiple Choice

Which of the following is an example of a tax avoidance strategy?

• A) Tax deductions.
• B) Tax exemptions.
• C) Tax exempt sources of income.
• D) All of these answer choices are correct.

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Definitions:

Marketable Securities

Financial instruments that can be easily sold or bought on public stock and bond markets.

Line Of Credit

A flexible loan from a bank or financial institution that allows a borrower to draw down, repay, and reborrow funds up to a specified credit limit.

Leverage

The use of borrowed funds to increase one's investment capacity and potentially enhance the rate of return, also referring to influencing factors or the ability to influence outcomes.

Borrowing Money

The act of obtaining funds from lenders under the agreement to repay with interest within a specified timeframe.