It Is Difficult to Evade

question 6

Multiple Choice

It is difficult to evade:

• A)direct tax
• B)indirect
• C)proportional
• D)progressive tax

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Capital Gains Yield

The appreciation in the price of an investment, calculated as the increase in the investment's value divided by its initial purchase price.

Total Return

A measure of the performance of an investment, including both capital gains and dividends or interest, over a specific period.

Geometric Return

The average rate of return on an investment that is compounded over multiple periods, reflecting the compound interest effect.