Which of the Following Forms of Income Can Individuals Defer

question 102

Multiple Choice

Which of the following forms of income can individuals defer from taxation?

• A)dividends
• B)interest
• C)realized capital gains
• D)unrealized capital gains

---

Definitions:

Legitimate use of force

Refers to the socially sanctioned, legal, or accepted use of physical power or coercion by individuals or institutions, especially by the state or law enforcement, to maintain order or enforce laws.

Rational-legal authority

A form of leadership where authority is based on legal legitimacy and bureaucratic procedures, as opposed to traditional or charismatic forms of governance.

State

An institution that maintains a monopoly over the legitimate use of force in a given territory.

Political systems

Refers to the framework of formal legal institutions, processes, and norms through which a society organizes its governance and allocates authority to make and enforce policies.