Under a Flat Tax

question 1

Multiple Choice

Under a flat tax

• A) all tax breaks would be eliminated, and everyone would pay a flat tax of about 9 percent on income.
• B) some tax breaks would remain, and everyone would pay a flat tax of about 19 percent on income.
• C) some tax breaks would remain, and everyone would pay a flat tax of 9 percent.
• D) all tax breaks would be eliminated, and everyone would pay a flat tax of about 19 percent.

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Definitions:

Treasury Stock Acquisition

The purchase of a company's own shares from the marketplace, reducing the amount of outstanding stock.

Bond Issuance

The process of selling bonds to investors in order to raise capital.

Investing Activities

Financial actions that involve the purchase or sale of long-term assets and other investments not considered cash equivalents.

Repaying Money

The process of returning borrowed funds to the lender along with any agreed upon interest or fees.