For Which of the Following Reasons Are VATs Considered to Be

question 82

Multiple Choice

For which of the following reasons are VATs considered to be very important revenue generators for the government?

• A)They are regressive in nature
• B)They target only individuals in the high income class
• C)They cannot be avoided by individuals
• D)They boost a country's exports
• E)They lower a country's imports

---

Definitions:

Capital Mix

Capital mix refers to the combination of debt and equity financing used by a company to fund its operations and growth.

Retained Earnings

The portion of a company's profits that is retained or kept in the company rather than paid out to shareholders as dividends.

Flotation Cost

Expenses incurred by a company during the issuance of new securities, including underwriting fees and legal costs.

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionally weighted, assessing investment risk and strategy.