Which of the Following Taxes Has a Ceiling on the Amount

question 160

Multiple Choice

Which of the following taxes has a ceiling on the amount of annual earnings subject to tax?

• A) FICA-OASDI taxes
• B) sales tax
• C) federal income tax
• D) FICA-Medicare taxes

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Definitions:

Limited Liability Protection

A legal structure that shields a company's owners from being personally responsible for the company's debts or liabilities.

Corporate Form

A legal business structure recognized in many jurisdictions allowing the company to operate as a separate legal entity apart from its owners, providing limited liability and ease of ownership transfer.

Entrepreneurs

Individuals who create, launch, and manage new businesses, taking on most of the risks and reaping most of the rewards of the venture.

Financial Asset

Any asset that is cash, an equity instrument of another entity, or a contractual right to receive cash or another financial asset.