Steve Agrees to Assume a Debt of Thumb Grippers Company

question 28

Multiple Choice

Steve agrees to assume a debt of Thumb Grippers Company to Main Street Bank.The agreement is not in writing.To be enforceable,the promise must be for the benefit of

• A)any party.
• B)Steve.
• C)Thumb Grippers.
• D)Main Street.

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Definitions:

Average Tax Rate

Total tax paid divided by total taxable income or some other base (such as total income) against which to compare the amount of tax paid. Expressed as a percentage.

Highly Progressive

A tax system in which tax rates increase significantly as income or wealth rises.

Federal Spending

Expenditures by the federal government, which can include spending on defense, social security, health care, and infrastructure, among others.

National Defense

Government actions, including militaristic measures, taken to defend a country from external threats and ensure national security.