Choose the Word or Phrase in [ ] Which Will

question 51

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Federal income taxation is [progressive | regressive].

---

Definitions:

Shares

Units of ownership in a company, representing a proportion of the corporation's capital, giving the shareholder a right to its profits.

Cumulative Dividends

Preferred stock dividends that accumulate if not paid as scheduled and must be paid out before dividends can be distributed to common shareholders.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and typically doesn't have voting rights.

Income Earned

Revenue received from work performed or services provided, often used interchangeably with earned income.