What Is a Major Limitation to the Apparent Incentive of Tax

question 16

Multiple Choice

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

• A)If a 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.
• D)Tax holidays are offered only by governments with the ten weakest economies.

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Definitions:

Factored Form

Expressing a polynomial as a product of its factors, which can be simpler polynomials or constants.

Factor

A number or algebraic expression that divides another number or expression evenly, with no remainder.

Trinomial

A polynomial consisting of three terms or monomials, often in the form ax^2 + bx + c.

Expression

An arrangement of numbers, symbols, and operators designed to represent a specific mathematical quantity or concept.