According to the Ability-To-Pay Principle of Taxation

question 234

Multiple Choice

According to the ability-to-pay principle of taxation

• A)individuals who receive the benefit of a good or service should bear a greater share of the tax burden.
• B)it is fair to expect a greater share of the tax burden to be borne by people who have a greater ability to pay.
• C)people in the same economic situation should bear an equal share of the tax burden.
• D)individuals who are willing to bear a greater share of the tax burden should be compensated with non-monetary benefits.

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Definitions:

Preventive Maintenance

Regular and routine maintenance performed on equipment and machinery to prevent unexpected failures and downtime.

Value-based Pricing

A pricing strategy where the price is based on the perceived or estimated value of a product or service to the customer, rather than the cost of production.

Operating Costs

Expenses associated with the normal business operations, including cost of goods sold and operational overhead.

Operating Cost

Expenses associated with the day-to-day functions of a business, including costs for rent, utilities, and payroll.