Taxation Is a Financial Force in That

question 120

Multiple Choice

Taxation is a financial force in that

• A) if the firm can achieve a lower tax burden than its competitors, it can generate higher revenues, and then lower its prices or pay higher wages and dividends.
• B) governments that enact taxes are formal institutions that enforce tax law via force.
• C) businesses are compelled by foreign governments to pay taxes.
• D) it is not controlled by the firm.

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Definitions:

Evolutionary Theory

A theory proposing that the diversity of all life arises and develops through the processes of natural selection, mutation, gene flow, and genetic drift.

Frustration-Aggression Model

A psychological theory suggesting that frustration, or the blocking of goal achievement, leads to aggression or hostility.

Social Learning Theory

A theory that suggests people learn new behaviors through observation, imitation, and modeling from others.

Behavioural Stage Model

A theoretical framework that describes the various phases individuals go through when changing their behavior.