What Is a Major Limitation to the Apparent Incentive of Tax

question 41

Multiple Choice

What is a major limitation to the apparent incentive of tax holidays?

• A) If an MNC is taxed on worldwide income, it will eventually pay tax on the foreign income when it is repatriated.
• B) Income earned by multinational corporations must remain in the foreign country offering the tax holiday.
• C) The tax holidays are only available to large multinational corporations of wealthier nations.
• D) Tax holidays are offered only by governments with the ten weakest economies.

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Definitions:

Unfavorable Environmental Factor

An external condition that negatively impacts the growth, reproduction, or survival of organisms, such as pollution or extreme temperature.

Competitive Exclusion

A principle that two species competing for the same resources cannot coexist at constant population values if other ecological factors remain constant.

Secondary Succession

An ecological succession that takes place after some disturbance destroys the existing vegetation; soil is already present. See succession.

Resource Partitioning

The process by which species adapt to competition by utilizing different parts of the available resources, reducing direct competition.