Which of the Following Is the Best Definition of Tax

question 31

Multiple Choice

Which of the following is the best definition of tax planning?

• A)Preparing a client's tax return
• B)Planning taxpayers' financial affairs in an effort to minimize tax liability
• C)Planning taxpayers' financial affairs to find the best way to avoid tax by successfully bending tax law
• D)Researching complex tax issues
• E)None of the above are considered tax planning

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Definitions:

Cognitive Bias

Refers to the systematic pattern of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Particular Frame

A specific perspective or point of view adopted in evaluating or analyzing a situation, which can influence perceptions and outcomes.

Secondary Concerns

Issues or considerations that are not of primary importance but may still influence outcomes or decisions.

Primary Issues

The main or most important topics or problems to be discussed or dealt with in a negotiation or discussion.