Which of the Following Statements with Regard to Tax Is

question 27

Multiple Choice

Which of the following statements with regard to tax is true?

• A)Under a full imputation tax system,the effects of corporate and personal taxes can offset each other exactly.
• B)Under a classical tax system,any advantage from reducing company tax would be due only to differences in the timing of tax payments.
• C)Under a classical tax system,any net tax advantage of corporate borrowing is likely to go only to companies with high and stable earnings.
• D)In order for residential shareholders to benefit under a full imputation tax system,the wastage of tax credits must be reduced.

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Definitions:

Elastic Fibers

Part of the connective tissue in the body that provides elasticity and resilience to structures like the skin, lungs, and blood vessels.

Connective

Tissue that supports, connects, or separates different types of tissues and organs in the body.

Epithelial

Relating to or characteristic of epithelium, a tissue composed of sheets of cells that line the surfaces and cavities of organs and blood vessels.

Muscle

A tissue in animals composed of fibers capable of contracting to effect bodily movement.