A Progressive Tax Is One That Takes

question 4

Multiple Choice

A progressive tax is one that takes:

• A) a fixed percentage of income.
• B) a lower percentage of income as income rises.
• C) a higher percentage of income as income rises.
• D) higher percentage of income as income falls.

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Definitions:

Incremental Profits

Additional earnings that result from a specific business decision or action, compared to what would have happened without that decision.

Extending Credit

The practice of lending money or goods with the expectation of repayment in the future, often with interest.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.

Collection Policy

The set of guidelines a company follows to manage its accounts receivable and recover owed money from clients.