The Main Difference Between Sales and Excise Taxes Is That

question 15

Multiple Choice

The main difference between sales and excise taxes is that

• A) sales taxes apply to a wide range of products, while excise taxes apply only to a select group of products.
• B) excise taxes apply to a wide range of products, while sales taxes apply only to a select list of products.
• C) sales taxes are consumption taxes, while excise taxes are not.
• D) excise taxes are consumption taxes, while sales taxes are not.

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Definitions:

Closed at Par

A situation where a bond or preferred stock is bought or sold at its face value.

Dividend Yield

The Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price, providing investors with insight into the income generated from an investment in its shares.

Price Appreciation

An increase in the value of an asset or investment over time.

Rate of Return

A measure of the profitability of an investment, calculated as a percentage of the original cost of the investment.