Which of the Following Is Likely to Be a Fully

question 59

Multiple Choice

Which of the following is likely to be a fully deductible business expense?

• A) Salaries in excess of the industry average paid to attract talented employees.
• B) The cost of employee uniforms that can be adapted to ordinary personal wear.
• C) A speeding fine paid by a trucker who was delivering a rush order.
• D) The cost of a three-year subscription to a business publication.
• E) None of these is likely to be deductible.

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Definitions:

Collusion

A secret agreement or cooperation between parties for a deceitful or fraudulent purpose, especially to cheat or deceive others.

Restrictive Trade Practice

Business practices that limit competition or control prices, often viewed negatively and regulated by law.

Misleading Advertising

Advertisements or promotional materials that deceive or lie to consumers, causing them to have false impressions or understandings.

Competition Act

Legislation meant to prevent anti-competitive practices in the marketplace, protecting consumer interests and promoting fair trade.