A Plumbing Firm Is Considered a Service Firm Since They

question 35

Multiple Choice

A plumbing firm is considered a service firm since they are providing "services" to households and businesses. The service component then would fall into which one of the following categories of offerings?

• A) pure service
• B) pure tangible good
• C) hybrid
• D) tangible good with accompanying services
• E) major service with accompanying minor goods and services

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Definitions:

Average Tax Rate

Total taxes paid divided by total income

Taxable Income

The amount of income used to determine how much tax an individual or a company owes to the government in a given tax year.

Lump-Sum Taxes

Taxes with a fixed amount, not dependent on the taxpayer's income level or economic activity, making them neither progressive nor regressive.

Equitable

Characterized by fairness and impartiality; the fair distribution of resources and opportunities.