According to the Ability-To-Pay Principle of Taxation

question 234

Multiple Choice

According to the ability-to-pay principle of taxation

• A)individuals who receive the benefit of a good or service should bear a greater share of the tax burden.
• B)it is fair to expect a greater share of the tax burden to be borne by people who have a greater ability to pay.
• C)people in the same economic situation should bear an equal share of the tax burden.
• D)individuals who are willing to bear a greater share of the tax burden should be compensated with non-monetary benefits.

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Definitions:

Legal Entities

Organizations that have legal rights and responsibilities, including the ability to enter into contracts, sue, and be sued; examples include corporations, governments, and non-profit organizations.

New Entity

A freshly established organization or structure that has its own legal identity.

Acquisition

The process of obtaining control of another corporation, either through purchase or merger.

Takeover

The transfer of control over a company from one group to another. The term generally has a hostile implication.