A Corrective Tax Is Also Known As

question 277

Multiple Choice

A corrective tax is also known as:

• A)a command-and-control regulation.
• B)a Coase tax.
• C)a Pigovian tax.
• D)a Smithian tax.

---

Definitions:

Partnership Agreement

A contract between business partners that outlines the terms of the partnership, including each partner's duties, profit sharing, and resolution of disputes.

Business Creditors

Entities or individuals to whom a business owes money or other financial obligations.

Personal Assets

Items of value owned by an individual, including tangible property like real estate and cars, as well as intangible assets such as investments.

Unlimited Liability

The legal responsibility of business owners to bear the full extent of their company's debts or obligations, potentially requiring them to sell personal assets to cover business debts.