A Tax Shield Is Equal to the Reduction in a Firm's

question 39

Multiple Choice

A tax shield is equal to the reduction in a firm's:

• A) total tax liability resulting from a tax deductible expense.
• B) taxable income resulting from depreciation.
• C) taxable income resulting from a decrease in long-term debt.
• D) net income caused by depreciation.

---

Definitions:

Stigmatized Group

A social group that is discredited or devalued by society due to certain attributes, stereotypes, or attributes perceived as negative.

Cognitive Load

The cumulative mental energy expended in working memory, affecting the way information is processed and learned.

Negative Stereotypes

Preconceived and oversimplified beliefs or ideas about certain groups or individuals that are generally harmful and not based on factual evidence.

Attributional Ambiguity

A psychological phenomenon where individuals are uncertain if the treatment they receive, especially in terms of success or failure, is based on their abilities or on stereotypes and biases associated with their social identity.