What Does a Government Engage in When It Taxes Businesses

question 36

Multiple Choice

What does a government engage in when it taxes businesses or individuals?

• A)fiscal policy
• B)monetary policy
• C)devaluation
• D)arbitrage

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Definitions:

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability.

Disclaimer

A term in a contract whereby a party attempts to relieve itself of some potential liability associated with the contract. The most common example is the seller’s attempt to disclaim liability for defects in goods that it sells.

Recovery

The act of obtaining something of value through legal means, often in compensation for damages or loss.

Strict Liability

Refers to a legal doctrine where a party is responsible for damages or harm caused without needing to prove negligence or fault.