Sometimes When Businesses Are Critically Delinquent on Their Tax Liabilities,the

question 92

Essay

Sometimes when businesses are critically delinquent on their tax liabilities,the tax authority comes in and literally seizes the business by chasing all of the employees out of the building and changing the locks. What does this tell you about the importance of taxes relative to our discussion of cash flow?
Why might a business owner want to avoid such an occurrence?

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Definitions:

Classical Theory of Employment

An economic theory that posits that the economy naturally operates at a level of full employment due to the flexibility of prices and wages.

Total Consumption

The aggregate amount of goods and services consumed by individuals and entities in an economy.

Total Saving

The aggregate saving in an economy, comprising both private saving by households and public saving by the government.

Aggregate Supply Curve

A graphical representation showing the relationship between the total production of goods and services at various price levels in an economy.