Which of the Following Best Explains the Distinction Between an Internal

question 29

Multiple Choice

Which of the following best explains the distinction between an internal and an external tax?

• A) The external tax is levied at the end of the year whereas the internal tax is levied at the moment of transaction.
• B) External taxes had to be disclosed; internal ones did not.
• C) External taxes applied to large capital goods; internal ones applied to domestic goods produced in the colonies.
• D) External taxes were British import duties imposed under Parliament's legal authority to regulate international trade; while internal taxes were controversially imposed by Parliament on many domestic transactions within the colonies.
• E) External taxes had to be paid directly to the king, internal ones to the colonial assembly.

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Definitions:

Trialability

The extent to which a potential customer can examine the merits of a new product without having to spend a lot of money or time doing so.

Return-On-Investment

A financial metric used to measure the likelihood of gaining a return from an investment relative to its cost.

Time Constraints

The limitations on the amount of time available to complete a task or project.

Budget Constraints

Financial limitations that restrict the amount of money available for spending and investment.