Which Term Describes the System of Individual Taxation in Canada

question 7

Multiple Choice

Which term describes the system of individual taxation in Canada?  

• A) regressive tax 
• B) proportional tax 
• C) flat tax 
• D) progressive tax

---

Definitions:

Shareholder

An individual or entity that owns shares in a corporation, thereby holding a portion of the company's stock and potentially benefiting from its profits in the form of dividends.

Preemptive Right

A shareholder’s option to purchase new issuances of shares in proportion to the shareholder’s current ownership of the corporation.

Model Business Corporation Act

A set of model laws prepared to assist states in drafting legislation to regulate the formation and operation of corporations.

Articles of Incorporation

The primary document required to register a corporation with a state, detailing the fundamental aspects of the company, such as its name, purpose, and structure.