Which of the Following Would Indicate That an Income Tax

question 176

Multiple Choice

Which of the following would indicate that an income tax is progressive?

• A)high-income people pay $3, 000; low-income people pay $1, 000
• B)low-income people pay $3, 000; high-income people pay $1, 000
• C)high-income and low-income people all pay $1000 each
• D)high-income people pay 20 percent of their income in taxes; low-income people pay 10 percent
• E)both high-income and low-income people pay 10 percent of their income in taxes

Understand the concept of privity in professional liability and how it affects the ability of third parties to recover damages.

Grasp the implications of fraud in professional practice, including both actual and constructive fraud.

Recognize the significance of confidentiality and privilege in the attorney-client relationship.

Understand the role and responsibilities of the Public Company Accounting Oversight Board in overseeing public company audits.

---

Definitions:

Put Option

An agreement in finance that permits the owner to sell a predetermined quantity of a basic asset at an agreed price during an established timeframe, without being compelled to do so.

Protective Put

An options strategy where an investor purchases a put option for an existing stock position to limit potential losses.

Listed Put Option

A put option that is traded on an official exchange, giving the holder the right but not the obligation to sell a specific asset at a set price before the option expires.

Exercise Price

The price at which the holder of an options contract can buy or sell the underlying asset.