Which of the Following Describes a Tax That Meets the Standard

question 77

Multiple Choice

Which of the following describes a tax that meets the standard of convenience?

• A)A tax that the government can administer without excessive cost.
• B)A tax that is easy for taxpayers to compute and pay.
• C)A tax that minimizes the opportunity for noncompliance.
• D)All of the above describe a convenient tax.

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Definitions:

Bondholders

Individuals or institutions that hold the debt securities issued by governments or corporations, entitled to receive interest payments and the principal on maturity.

Common Stockholders

Individuals or entities that own shares of common stock in a company, granting them certain rights like voting on corporate matters.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities, capable of conducting business, owning assets, and being taxed.

Dollar Terms

Refers to the value of transactions, prices, or economic indicators denominated in the U.S. dollar.