Which of the Following Are Counterarguments to the Viewpoint That

question 24

Multiple Choice

Which of the following are counterarguments to the viewpoint that taxes are social tools by which we can achieve a more equal society?

• A)Redistribution of income through government is unfair coercion of those with higher incomes.
• B)Inequality is frequently the result of higher productivity and thus is just.
• C)Equality of income occurs naturally over the life cycle so redistribution at one point in time disrupts this natural process.
• D)a and b
• E)a and c

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Definitions:

Cumulative Preferred Stock

A type of preferred stock where dividends accrue if not paid as scheduled, ensuring holders receive dividends in arrears before common stockholders get any.

Convertible Preferred Stock

A type of preferred stock that offers the option to convert into a specified number of common shares, usually after a predetermined date.

APB Opinion No.14

An accounting guideline issued by the Accounting Principles Board addressing the accounting for convertible securities and the exercise of conversion options in financial statements.

Conversion Provision

A clause in a security or loan that allows the holder to convert into a different security, typically common stock, under certain conditions.