Which of the Following Economic Activities Is Difficult to Tax

question 27

Multiple Choice

Which of the following economic activities is difficult to tax due to the emergence of services, intangible property, and business activities without clear geographic locations?

• A)Internet sales
• B)outsourcing
• C)corporate income
• D)assessment
• E)collective bargaining

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Definitions:

Potential Loss

Refers to the possible financial loss or damage that might arise from a risk or unfavorable event.

Break-Even Price

The financial point at which an asset needs to be sold for an investor to regain their initial outlay without experiencing any gain or loss.

Put

A options contract that gives the owner the right, but not the obligation, to sell a specific amount of an asset at a predetermined price before a specified date.

Premium

An amount paid over the regular price or the intrinsic value for securities, insurance policies, or other financial products.