What Is a Major Limitation to the Apparent Incentive of Tax

question 41

Multiple Choice

What is a major limitation to the apparent incentive of tax holidays?

• A) If an MNC is taxed on worldwide income, it will eventually pay tax on the foreign income when it is repatriated.
• B) Income earned by multinational corporations must remain in the foreign country offering the tax holiday.
• C) The tax holidays are only available to large multinational corporations of wealthier nations.
• D) Tax holidays are offered only by governments with the ten weakest economies.

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Definitions:

Neuroticism

A personality trait marked by a tendency to experience negative emotional states.

Medical Care

Professional services provided by healthcare practitioners to diagnose, treat, and prevent illness and maintain physical and mental well-being.

Label for Symptoms

The process or action of identifying and naming symptoms experienced by an individual, often leading to diagnosis or recognition of a condition.

Catastrophize

The cognitive distortion of imagining the worst possible outcomes of a situation, often leading to increased anxiety and stress.