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An excise tax causes inefficiency if the number of transactions in a market is reduced as a result of the tax.Because the tax discourages mutually beneficial transactions,there is a(n) _____ from a tax.
Events of Default
Specific conditions or circumstances outlined in a loan agreement or bond indenture that, when occurring, grant the lender the right to demand early repayment or take other corrective actions.
Cross Default
A provision in a loan agreement that triggers a default under the agreement if the borrower defaults on another debt obligation.
Compliance Default
Compliance default occurs when a party fails to act in accordance with set guidelines, rules, or laws, potentially leading to legal consequences.
Stock Options
Options granted by a company to its employees as a form of incentive compensation allowing them to buy shares at a specific price for a certain period.
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